Research On Corporate Governance, External Supervision And Transparency Of Financial Reports For Listed Companies

Financial reports are comprehensive documents carrying accounting information and also effective way to convey enterprise status to investors. With the trend of global economy and multinational companies rising, enterprises are facing unprecedented competition and challenge. Some of them lied to medium and small investors in face of pressure by forging certificates, transactions and adjusting profit to stabilize stock price. It has been alarmed that we should not neglect the quality of accounting information as capital markets develop.From the time when "transparency" was introduced to accounting in1996, it had been drawn attention in accounting theory. Accounting experts are fighting and moving forward for improving the transparency of financial reports with the persistent spirit. Research on transparency of financial reports and its factors is a new and potential field, which could not only assure future development of enterprises, but also provide basis and guarantee for stabilizing market economic order, optimizing allocation of resources and protecting interests of investors. Organizations and experts have already obtained valuable results, but it still needs further discussion to apply directly because of different social, economic and legal atmosphere. Especially Chinese markets started late with imperfect regulations and Chinese characteristics, so western achievements could not be used directly for avoiding opposite results.Therefore, based on both domestic and foreign researches, this thesis analyzes the theory of investor protection, does empirical test which taken listed companies as study sample and reaches the conclusion concerning transparency of financial reports. Meanwhile, it brings forward advices and insufficiency and further research direction hoping for contributing to transparency of financial reports.This thesis can be divided into five parts:Firstly, introduction. It clears out research motive, significance, contents, methods and positive contribution and prepares for further thorough research.Secondly, literature review. Transparency of financial reports was firstly bought up by Levitt-former SEC chairman with further researches by theorists. This thesis lays out domestic and foreign research from comprehension, influencing factors and measurement of financial report transparency.Thirdly, theory analysis and research assumption. The author takes investor protection as entry point and does theory analysis of main issue (principal-agent theory, and information theory) and external supervision. It proposes author’s understanding of transparency. It defines relative concepts like financial reports and transparency, compares transparency and quality of financial reports and analyzes the connection and difference between them and finally puts forward research assumption.Fourthly, empirical research. The internal and external aspects which affect transparency are corporate governance and external supervision. Cooperate governance mainly includes shareholding structure, effectiveness of director board and executive control. External supervision mainly includes government interference, legal atmosphere and external audit. This thesis takes rating of Shenzhen stock exchange as effectiveness measurement of transparency, does comparison and analysis of two opposite groups and regression and comes up with empirical conclusion.At last, conclusion. It mainly covers research conclusion, insufficiency and further research direction.Absorb and learn from previous results on the basis of theoretical analysis on the protection of investors, come to both internal and external transparency in financial reporting, corporate governance and external supervision, and an empirical study sample of listed companiestest. Only a particular aspect of corporate governance or external supervision for the past compared to the object of study, this article will be combination of both, the study can be said that the combined effect of the transparency of listed companies’ financial report is a new attempt. However, I am limited ability and level of less mature understanding and application of relevant theory and research methods, the study sample and the choice of variables still to be improved, I will cycle in the future study and work to improve and continue to explore.