The Impact Of Overall Listing And Spin-off Listing On The Information Disclosure Quality Of The Listed Companies

Overall listing/spin-off listing belongs to enterprise asset division problem, which is China’s capital market problem left over by history after the equity division. They are a set of corresponding concept, its generation is related to the examination and approval system of capital market in our country, which means the corporations must meet a series of hard accounting indicators before get listed. In order to meet the requirements, shareholders tend to split a large enterprises into joint-stock company and the parent company, put high-quality assets into joint-stock company, some bad assets, that has nothing to do with main business, remain in the parent company, then make the joint-stock company get listed. This is called spin-off listing. At the same time, the company is listed with all of its assets, called the overall listing.In addition, with the development of shareholding system and mature of capital market, investor’s equity is becoming dispersed, and their capital can exit more easily. In such circumstances, investors couldn’t control the operation of the enterprise. They can earn their interests mainly by choosing the company which can bring capital appreciation. Investors make informed investment choices to protect their own interests depends on the two conditions, one is the rational and professional judgment ability, the other is the real and fair information, provided by the listed company. Therefore, the quality of information disclosure is critical for investors. In the long run, the high quality of information disclosure is the key to protect investors’interests.In existing literature, overall listing/spin off listing has been discussing the pros and cons, academic circles reached a consensus about the effect of the overall listing/pin-off listing on the quality of the information disclosure of listed companies. Existing normative research has agreed that the spin-off listing has led to the result that listed company information disclosure is not transparent. Under the equity structure of Spin-off listing, the parent company shareholders have the motivation and the ability to control the information disclosure of listed companies. But there is no empirical research about this conclusion.This article uses the literature methodology, combining theoretical research with empirical research. Analysis the overall listing/spin-off listing’s characteristics and its potential impact on disclosure quality in theoretical, based on the related theory. Then adopt the method of empirical study, putting forward research hypothesis, defining variables, selecting listed companies and collecting their data. After that, set up the regression analysis model to implement the empirical test of the hypothesis.The research results show that the information disclosure quality of overall listed companies is significantly superior to spin-off listed companies, thus verified the hypothesis.According to the research conclusion, this paper gives the policy suggestions. First, continue to adhere to the reform direction of overall listing, encourage and support large state-owned enterprises to achieve the overall listing, continue to deepen reform of state-owned enterprises, which changes the traditional enterprises to modern competitive enterprises.Second, when regulators is in support of overall listing, should also intensify their efforts to study the appeared and possible problems in process, issued regulations timely, establish and perfect the relevant system, to regulate the behavior of the overall listing, to promote the healthy development of capital market.Third, regulators should continue to improve the information disclosure mechanism, reduce the blank or grey zone of rules, compressed space for information manipulation, increase the cost of illegal behavior, to unceasingly enhance information disclosure quality and enterprise credibility of listed companies.The deficiency of this paper lies in that the sample size of overall listing/spin off listing companies is not large enough; it’s unknown that if the degrees used to measure the quality of information disclosure is appropriate; the method to eliminate systematic errors caused by accounting standard is not good enough, remains to be improved.The main innovation of this paper lies in that, it is a topic of innovation. Overall listing and spin-off listing, the quality of information disclosure have all been discussed frequently. Scholars have had a lot of normative and empirical research of both problems. However, the research of the relationship between these two is very few, and is all normative research. There is no related empirical test. On this issue, this paper adopts the empirical method, study their relationship, makes contribution to this field.