Information Disclosure Quality, Capital Structure And Financial Performance

With the continuous development of our country’s economy, the information disclosure system of stock market has become more perfect. In November2011, Shen Zhen Stock Exchange Market revised the evaluation method of disclosure.For the first time, information disclosure evaluation indices have been divided into four grades:A, B, C, D. In the mature foreign securities market,to promote the quality of information disclosure in aim of reducing information asymmetry, perfecting the information disclosure system is helpful to enhance the liquidity of stock, which would take advantage of equity financing of listed companies to change the capital structure. Therefore, discussion and research in this paper would focus on the issue that will the perfection of information disclosure system is beneficial to change the asymmetric information of gem listed companies and to improve the capital structure, so as to achieve the aim of improving financial performance.The gem listed companies are mostly belongs to the emerging industry in the growth stage, which mainly rely on external financing, financing form and equity financing as the main form of external financing of listed companies. The gem listed companies of high risk and limits make the current liabilities as the main way of bond financing. Because of the particularity of the risk, more investors require the enterprise to provide more perfect information disclosure, and companies also need to rely on information disclosure to conduct signal and obtain lower financing costs. Information disclosure for gem listed companies influence significance is more important. Therefore, this article chose the gem listed companies as research samples. Through the analysis of information disclosure quality, this paper hopes to find that whether and how the quality of information disclosure affect the relationship between capital structure and financial performance, providing a reference for the behavior such as operators to make decisions and recommendations.For the companies which have information disclosure of high quality, compared with the company information disclosure of low quality, they would get more investor’s attention so that they would be requested for a lower cost on investment. They were also more likely to achieve long-term loan. So companies of high information disclosure quality of tend to own broader source of capital and capital structure. The conditions of lower cost of capital can also make them increase debt in a reasonable range, which would be more profitable for company financial performance, so as to expand the scale of the company to improve operating efficiency. At the same time, the company financial decision may also reverse to affect the quality of information disclosure. Sometimes, in order to avoid further information disclosure due to external financing, companies tend to choose the optimal capital structure or conservative capital structure. Moreover, they may give up some financing project in order to avoid the disclosure purpose. It means, under the condition of low quality of information disclosure, debt financing is not only difficult to achieve, but also make the companies face a higher risk, increase in debt financing affect the company’s financial performance. This paper argues that information disclosure quality and the capital structure influence the company’s financial performance, company managers when making decisions, two-way choice, should according to the existing project situation of information disclosure, but also rely on the quality of information disclosure to improve the capital structure. Information disclosure quality is different, the capital structure has the different effect on financial performance, the relationship between the changed.In this paper, the GEM board listed company’s financial performance as the research object, research information disclosure quality whether to change the capital structure influence on financial performance, and will be graded according to the disclosure of information of high and low, respectively to analyze the influencing factors of financial performance and comparison. In model in this paper, using the multivariate regression method, score and cross terms of the capital structure of the information disclosure, used to study the quality of information disclosure, whether affect the relationship between capital structure and financial performance of listed companies, and other influence factors for study the relationship between financial performance.In this paper, the data is from the CSMAR Database and the Shenzhen Stock Exchange Listed Company Credit Archives. Selection of return on equity (ROE) as evaluation index of financial performance, the Shenzhen Stock Exchange Information Disclosure score (DEGREE) in information disclosure quality evaluation index by using SPSS16.0and Eviews6.0analysis software, the capital structure, information disclosure score, current debt ratio, total assets turnover, asset size and growth of six factors were studied. Results show that the gem listed companies in2012, the score high on information disclosure of enterprise capital structure and financial performance, low, and the information disclosure of enterprise capital structure is negatively related to the financial performance, information disclosure quality as the important influence factors of the change of the relationship.In addition, current liabilities ratio and negatively related to the financial performance, the other three factors and financial performance are related.GEM Board listed companies, should be combined with their own situation, the capital structure and quality of information disclosure to make proper adjustment, improve operational efficiency, achieve the result that improve financial performance. Company to make financing decisions and capital structure adjustment, can be combined with the level of information disclosure, the current adjusted to reach the purpose of financial performance. Or according to the existing capital structure, improve the quality of information disclosure, so as to get more attention of investors and more funding sources, finally achieve the purpose of improving financial performance. Considering the whole situation of the gem in our country, financing structure defect of non-current liabilities ratio is too small, increase the long-term debt ratio and reduce the proportion of current liabilities, can improve financial performance. Because more than a high proportion of current liabilities will increase the enterprise’s short-term debt service pressure, affect the enterprise operation efficiency, so appropriate to reduce the proportion of current liabilities can improve the financial performance of enterprises.