Study On The Factors Of Major Omissions In Information Disclosure Of Listed Companies

Since the establishment of Shanghai and Shenzhen stock exchanges, our capital market has been rapidly developing for more than 20 years. However, compared with Europe and the United States developed countries, as a developing country, the capital market in our nation is still in its infancy. It is still an emerging market. In the construction of market system and the relevant laws and regulations, there is a lot of work to do. Especially in the aspect of information disclosure of listed companies, the violations are still prominent. It is necessary to explore the reasons and find out its influence factors. Then we need to strengthen supervision to promote the sustainable and healthy development of capital market in China.Information disclosure came into being against the backdrop of the “separation” of enterprise ownership and management rights, when there is a need for external financing. To operators, the internal management of the company, business is like the palm of their hands. While, the external investors and creditors of the company are often poorly understood. They need to strengthen the understanding of the company relying on the information disclosure by the management. The former need the information to make investment decisions. Although the relevant laws and regulations on information disclosure of listed companies in China put forward specific requirements, and CSRC, stock exchange and other departments have strengthened the supervision, there are still quite a number of violations of information disclosure of listed companies. To the country, the market, the investors, and the enterprise itself, is has brought serious harm. Information disclosure violations are diverse. For different types of irregularities, the influence factors are different. In previous studies, most scholars take the information disclosure violations as a whole object for research. The conclusion is not consistent. This may be because they didn’t distinguish different types. This paper will subdivide the types of information disclosure violations and take major omissions, which have occurred many times, for empirical research.This paper selects the Shanghai and Shenzhen A shares from 2004 to 2013 as samples, which are main board companies and have been punished by CSRC, Shanghai or Shenzhen stock exchanges, because of major omissions in information disclosure. This paper weeds out the data missing samples, and the financial industry, insurance industry listed companies drawing lessons from the former research, because their disclosure requirements are different from other industries. The institutional investors holding data is from Shanghai Wind database. The rest derives from CSMAR. Finally this paper selects 9296 samples. The binomial logistic regression results show that the higher ownership concentration, the higher shareholding of institutional investors, or the higher proportion of independent director will lead to the lower possibility of major omissions in information disclosure of listed companies. The joining together of chairman and CEO will increase the possibility of major omissions in information disclosure. And the board size has a non-significant influence on major omissions.This paper focuses on the major omissions in information disclosure of listed companies, enriching the content of the information disclosure studies of listed companies. For strengthening supervision, improving the governance of listed companies, and containing major omissions in information disclosure, this paper provides some suggestions.