Research Of Financial Information Transparency And Corporate Governance Impact On The Corporate Performance

The problem of the listed company financial information transparency isessential. It is directly related to the quality of the securities market information,investor protection and the steady development of capital market, is also one of themost important aspects of the securities supervision. In the practice of Chinese listedcompanies, the financial information is asymmetry between suppliers and users.False financial information badly frustrate the investors’ trust, damage the interestsof minority shareholders and other outside investors, also brought some negativeeffect to the normal order of capital market. Therefore, as the source of informationdisclosure, how to enhance financial information transparency of listed companies toimprove corporate performance is of the utmost important.We respectively study on the summaries and theories of the financialinformation transparency, corporate governance and corporate performance, then it isconcluded that financial information transparency should improve companyperformance. And then use the2008-2012annual report of SHENZHEN listedcompany, based on the panel data of sample company, draw the followingconclusions:The better financial information transparency help to improve companyperformance. Corporate governance can be divided into two aspects: OwnershipCharacteristics and the board of directors. Ownership Characteristics can influenceon the company performance are as follows: state holding listed company have alower performance than non-state-owned ones; Ownership concentration is too highwill damage the corporate performance: the better degree of ownership balancemakes the improvement in corporate performance. The board of directors effect oncorporate performance is as follows: when the chairman and general are the sameperson, the firm gain higher performance; The board size and proportion ofindependent directors can not impact on the corporate performance.The study of on the moderating effect of corporate governance on therelationship between financial information transparency and corporate performance. Ownership Characteristics: the state-owned listed company gain the harderrelationship between financial information transparency and corporate promotionthan the non-state-owned ones; Higher ownership concentration weakened therelationship between financial information transparency and corporate performance;The company who have the better degree of ownership balance could gain the bettercorporate performance based on the same financial information transparency. Boardgovernance: when the chairman and general are the same person, the firm will gainthe better performance based on the same financial information transparency; Theincreasing scale of the board of directors also enhanced the relationship betweenfinancial information transparency and corporate performance; Independent directordoes not seem to be well complemented in China. The improvement of theindependent directors proportion can not bring to the better performance, and it hasweakened the relationship between financial information transparency and corporateperformance.