Empirical Analysis On Relation Between Voluntary Information Disclosure Of Listed Companies Of Small And Medium-sized Board And Corporate Governance

Voluntary information disclosure is refer to the information that enterprise activelydisclosing to establish the company’s image, maintaining the relations with investor,reducing the cost of capital and the cost of debt, according to the needs of informationusers and the actual situation of enterprise. Voluntary information disclosure can reducethe asymmetric of information of securities issuance and trading in the capital market,economizing transaction cost, avoiding "adverse selection" of investors before beinglisted and the "moral risk" of management after being listed. Therefore, more and morelisted companies are focusing on it. Foreign research on voluntary information disclosureis earlier and more, but because of the different economy development condition andcultural environment in China, many foreign research is not fully suitable for the listedcompanies of china. Therefore, this article takes listed companies of small andmedium-sized board as angle, and analyzes the relationship between voluntaryinformation disclosure and corporate governance structure with data of annual reports.In this study, corporate governance is characterized by nine attribute, which are theproportion of government agencies ownership，the proportion of the biggest holder,ownership concentration, the proportion of managerial ownership, board size, theproportion of independent directors to total number of directors on the board, CEOduality. meanwhile, corporate size，financial situation and profitability are chosen asthe control variables. The index of voluntary information disclosure is divided into37indicators and three types including strategic information, financial information,non-financial information. In this study, the sample is selected from40listedmanufacturing companies of small and medium-sized board which are listed before2008,the data is selected from annual reports from2008to2010. This study demonstrates that the overall level of voluntary information disclosure of listed companies of small andmedium-sized board in China is relatively low, but with upward trend. Meanwhile, theproportion of the biggest holder and ownership concentration are significantly andpositively related to the extent of voluntary information disclosure, board size, theproportion of independent directors to total number of directors on the board and CEOduality are significantly and negatively related to the extent of voluntary informationdisclosure. While the coefficients for the proportion of government agencies ownershipand the proportion of managerial ownership are insignificant. According to the empiricalresults, the paper provides some advice on improving the voluntary informationdisclosure of listed companies of small and medium-sized board in China.