Research On The Correlation Between Information Transparency And Corporate Performance Under Different Product Market’s Competition Environment

The capital market is a highly information-oriented market. Information transparency has direct impact on the efficiency of resource allocation in the capital markets. With the the growing role of capital markets in the global economy, information transparency is one of the most important issues of capital market, which directly affects the resources’allocation efficiency in the market. As the role of capital market in the development of global economy becomes more and more important, information transparency will make one of the focuses concerned by the accounting theory and practice. There are some particularly prominent problems of information disclosure of listed companies. It is very common that information transparency isn’t very high. The reasons for these are our capital market’s dual properties of the emerging and transitional, lack of historical experience and relatively weak rules and norms, such as incomplete, not timely, out of initiative, or even untrue information disclosure. The corresponding economic consequences are very serious. The supply of information of low transparency damages the interests and confidence of investors very seriously, which leads to higher monitoring and transaction costs, breaks the normal operation order of capital market and reduces the allocation efficiency of social and economic resources in capital market. Some domestic scholars try to find the inner motivation to improve information transparency and make information transparency fully play the role in improving the validity of capital market from the aspects of information transparency’s impact factors and economics consequences and so on. They have achieved some achievements. Nowadays, some scholars have confirmed that information transparency can improve corporate performance theoretically and empirically. However, there are some defects of domestic and foreign scholars’research on the correlation between information transparency and corporate performance. They didn’t put different product market’s competition environment into consideration. In order to understand more comprehensively about the correlation between information transparency and corporate performance under different product market’s competition environment, this paper combines theoretical analysis and empirical examination based on our background and from the aspect of different product market’s competition environment; systematically studies the correlation between information transparency and corporate performance in order to provide some useful reference for information transparency to play its role.This paper is divided into five parts:The first part proposed the background of the study with its theoretical and practical significance, defined the research’s ideas and methods of this study based on fully introduced present study, established the basic research framework of this paper and pointed out the innovations and limitations. The second part introduced some theory basis of information transparency and corporate performance, described how information transparency affected corporate performance from the aspects of the asymmetric information theory, principal-agent theory, signaling theory and competition theory and so on. The third part defined the connotation of information transparency, described the metrics index of information transparency at home and abroad and discussed the correlation between information transparency and corporate performance from the degree of competition of the product market based on the analysis of the overall characteristics of our listed companies’information transparency. The fourth part selected A-share listed companied in Shenzhen Stock Exchange as research object from2008to2010, built a multiple regression model, empirically tested the correlation between information transparency and corporate performance and the differences of the correlation between information transparency and corporate performance under various degree of competition of the product market and further analyzed the interaction between information transparency with product market competition and corporate performance. The fifth part came to this paper’s research conclusion according to the empirical results, combined our special political and economic background and proposed some relevant policy advice based on empirical analysis and relevant theory.There are some innovations of this paper as follows:(1) this paper introduced product market competition as a factor and analyzed further on the correlation between information transparency and corporate performance and enhances the comparability and rigor of the empirical analysis, making the conclusions more convincing. The past references generally didn’t consider the impact of product market competition. This paper improved and expanded relevant information transparency theories research.(2) this paper selected A-share listed companied in Shenzhen Stock Exchange as research object from2008to2010from financial crisis and late financial crisis, empirically tested the degree of how information transparency affected corporate performance under various degree of competition of the product market and the interaction between information transparency with product market competition and corporate performance based on modified empirical research model. It enhances the comparability and rigor of the empirical analysis, making the conclusions more convincing.