The Correlation Studies About Equity Restriction And Quality Of Earnings Information Disclosure

Earnings information is an important index reflecting enterprises financial performance in the certain period of time, and it’s disclosure quality directly affect investors’decision-making behavior. So,it is of great significance for the stable operation of the capital market and sustainable and healthy development of listed companies in China. Under the special institutional background of China, the phenomenon of high ownership concentration and lack of□□equity restriction is widespread. There is no consensus of opinion in practice and convincing empirical evidence in academia. Under this situation, this thesis analyzed from multiple aspects, and think there should be a correlation between equity restriction and quality of earnings information disclosure. So, drawing on the research results at home and abroad, this thesis studies the impact of equity restriction on quality of earnings information disclosure mainly from the aspects empirical. This thesis is based on the principal-agent theory, asymmetric information theory, incomplete contracting theory and behavior finance theory, and makes empirical analysis of equity restriction and quality of earnings information disclosure by means of panel data analysis methods. This thesis begins with introducing literatures of equity restriction and quality of earnings information disclosure and describes the principal-agent theory, asymmetric information theory, incomplete contracting theory and behavior finance theory, and analyses the present situation and problems of equity structure and quality of earnings information disclosure. Then, on the basis of theoretical analysis in previous text, this thesis empirically studies the correlation between equity restriction and quality of earnings information disclosure, chooses1395listed companies, uses equity restriction and earnings information disclosure quality index as variables to build the empirical model. In order to determine the form of panel data model, this thesis utilizes respectively F test between mixed data model and fixed effect model, B-P test between mixed data model and random effect model, and Hausman test between fixed effect model and random effect model, and then, uses Panel data regression analysis to prove the correlation between equity restriction and quality of earnings information disclosure.The results of this study indicate that the proportion of the first largest shareholder is negatively related to the quality of earnings information disclosure significantly; the quality of earnings information disclosure rises after falling along with the improvement of the second to five big shareholder’s stake——U-shaped curve relationship; nature of actual controllers is negatively related to the quality of earnings information disclosure significantly. Meanwhile, by analyzing state-controlled listed companies and private listed companies, this study finds that in there is higher correlation ship between equity restriction and quality of earnings information disclosure in private listed companies. In addition, this thesis also concludes that:the size of company is positively related to the quality of earnings information disclosure significantly, return on equity is negatively related to the quality of earnings information disclosure, but not significant, asset-liability ratio is negatively related to the quality of earnings information disclosure significantly.Finally, according to all these results, with present situation of equity structure and the quality of earnings information disclosure, this thesis proposes a series of suggestions to improve the quality of earnings information disclosure, such as optimize the equity structure, Improve the quality of equity restriction, improve the mechanism of related law.