Study On Relations Between Corporate Governance Structure And Information Disclosure Quality Under Different Company Size

The stock market in China is an emerging market, which was founded only more than ten years. As numerous financial frauds of public companies happen continuously, the market participants pay higher attention to information disclosure quality of public companies. However, the phenomenon of distortion of information and disclosure abnormality is very serious. In theoretical and substantive industry, it’s commonly agreed that there is an imperative relationship between distortion of information and disclosure abnormality. The interior of public companies in China lack of the motivations on improving information disclosures quality and that mainly displays corporate governance, which is the internal cause for low quality information disclosures.This research analyzes the relationship between interna’ administrative structure of company and information disclosure quality, explores the influence factors on information disclosure qualities from the angle of different company sizes. This paper analyses the corporate governance structure and information disclosure quality from the theoretical and empirical aspects. In empirical study part, taking the Class A shares of Shenzhen Stock Exchange Place from2008to2010as the object and eliminating the financial public companies and public companies with incomplete data, this study gets396public companies in total and1188observed value, establishes binary logistic regression model and conducts empirical test to corporate governance structure and information disclosure qualities. It is found in the total sample, there is a positive correlation between the largest shareholder sharing holding ratio, proportion of tradable shares, size of the Board, return on assets and information disclosure quality in corporate governance structure Chairman of the board and general manager combined as one, asset-liability ratio and information disclosure quality has distinct negative correlation. The research results on different sizes of companies indicate relationship between corporate governance structure factors in different company sizes is completely different from information disclosure qualities. The large scale companies have shown serious "one dominating stock monopoly", the largest shareholder sharing holding ratio becomes the most obvious factor on influencing information disclosure qualities. The relationship between corporate governance structure and information disclosure qualities of medium size companies has the closest relationship to the research result of the total sample. The corporate governance structure of small scale companies has the most obvious influences on information disclosure qualities, which indicates that the small scale companies’ comprehensive building to company internal governance is the most important measure to improve information disclosure qualities.On the premises of the conclusion, this study puts forward a series of measures and suggestions on improving company governance structure and enhancing information disclosure qualities of China’s public companies from the theoretical and realistic researches, such as further improving the ownership structure, improving the internal supervision of the Board and perfecting the market and government regulations etc.