The Relationship Between Information Transparency And Operating Performance

Wall Street's crisis of confidence, which occurred in 2002, was United States'biggest failure since the Great Crash in 1929 and the Great Depression in 20c 30s. Before the Great Crash, the regulatory authorities believed in "invisible hand ", and the investors gave tacit consent to mode of free-market economy. At that time, the investors did not support the regulation of listed companies. And the proposals of disclosure of financial statements and preventing fraud were never seriously considered. There are five factors contribute to the Great Depression in 20c 30s. First, information disclosure system is undeveloped. Second, financial transparency is always neglected by the investors. Third, corporate governance is weak. Forth, information is unknown by the public. Last but not the least, the deficiency of professional ethics is evident. The Great Depression urged the wave of information transparency. Although the opening degree of security, corporations and other institutions is still not wide enough, verification is badly needed. Nowadays, Chinese capital market is at the stage of initial development. Thus there is a broad room for improvement of information disclosure theory and practice. Research of information disclosure does not have its own core model. The independent, integrated, comprehensive and extensive theoretical framework, which is adoptable for Chinese capital market, is absent.This paper uses qualitative and quantitative, empirical analysis based, supplemented by standard analysis methods.First,analysis the correlation between the transparency of information and corporate performance .Then use2007-2009 A-share listed companies in Shenzhen Stock Exchange as the sample for empirical analysis.Research component in the specification, the transparency of information and corporate performance from the meaning, measurement methods and their impact factors starting from the theory of information transparency and relevance of performance.In the empirical research part of the corporate performance indicators to measure return on assets was the dependent variable, the Shenzhen Stock Exchange Web site disclosure of credit information files published evaluation results as a yardstick, its as independent variables.First, use descriptive statistical analysis method to analysis corporate performance, information transparency and corporate governance structure of the relationship, and then use the method of quantitative analysis of information transparency and the relationship between corporate performance regression.Inspection of information transparency of listed companies and the relationship between corporate performance.Finally, the study found that the corresponding conclusion that transparency of information and corporate performance was a significant positive correlation, and for the problems identified in the study I will put forward policy recommendations for improvement.