An Empirical Study Of The Relationship Between Disclosure Quality, Ultimate Controller And Enterprise Financial Risk

With the development of global economic integration, enterprises are facingincreasingly complex environment. Whether owners, creditors, management and theBoard obtain reliable information timely, determines the quality of the decisions theymade, thus affecting corporate financial risk.China’s capital market is an emerging young market, the information disclosuremechanism is not perfect. According to signal theory, contract theory, and other basictheory we can know that, regardless of how the quality of information disclosure, owners,creditors and managers still make corresponding interpretation and decision based on theirown motivation, and their decisions will affect the financial risk.In China, many listed companies itself is a product of the reform of property rights,the ultimate controller of this part of listed company still have state-owned property withgovernment background. They are subject to government intervention than the non-state-owned holding company, to enjoy some of the industrial support policy, and bear some ofthe multiple objectives of the Government. It has both advantages and disadvantages tobusiness, and ultimately will affect corporate financial risk.This paper adopts empirical research methods, supplemented by the necessarytheoretical explanation. From the perspective of theory and practice we make empiricalstudy among the quality of information disclosure, the ultimate controller of property andcorporate financial risk. Provide empirical and theoretical basis to control the financialrisks, to prevent the financial crisis.