Association Study On The Characteirstics Of Board Of Directors And Members’ Human Capital With Quality Of Information Disclosure

With constantly improving and standardization of Chinese capital market, thelisted companies’ information disclosure quality has improved to some extent. Butthere are also some examples such as Kelon Electric, Galaxy Technology, andQinFeng Agriculture also show that Chinese capital market still has informationdisclosure problems. Non-standard information disclosure cannot be simply attributedto the accountant or the malfeasance of certified public accountant, but it is the deeperreason. From inside of companies, the deep-seated reasons are about a company’sgovernance structure and the soundness of governance functions. As the companyowner’s representative, board of directors’ features and members’ characteristics havedirectly influence on the quality of information disclosure.The external characteristics of the board of directors are directors’ characteristics;internal characteristics are members’ human capital. This thesis is based on these twocharacteristics, used405listed companies during2008to2010in the Shenzhen StockExchange as the study samples. Through by multivariate logistic regression weanalyzed four dimensions of the board characteristics: board size, proportion ofindependent directors, two jobs in one, and the number of board meetings. What’smore we found the contact between these four dimensions. At the same time, thesearticle innovative application resources dependent on the board of directors of theconcept of human capital theory and in-depth analysis of directors’ knowledge,professional skills and office experience on the quality of information disclosure. Thedescriptive statistics show that in the range of the study, the quality of informationdisclosure is improving as the same as the level of human capital, proportion ofindependent directors of listed companies and the unity of the two jobs rising. Rising proportion of listed companies in China the proportion of independent directors andtwo rank-one company, which is noteworthy that the proportion of independentdirectors of our company for about34%, while the proportion of the United States wasabout62%, the size of board and number of meetings have remained stable.Regression analysis showed significant interaction between the directors’ knowledgeand under-representation of experience, directors’ knowledge are employed by theexperience of interaction, and had negative influence on the quality of informationdisclosure. The board members’ experience had positive effects on the quality ofinformation disclosure and the professional skills had the same influence. This thesis’spurpose is to improving the quality of information disclosure for the listed companiesin China.