Product Market Competition And The Quality Of Information Disclosure

Information is core of capital market. Information disclosure is necessary precondition of investors protection and rational allocation of resources in security market. As the bioavailable basis of the market publicity principle, information disclosure has been the underlying belief and motivation headstream of modern capital market, and it is also one of the top ends of modern financial economic theories.China Securities Regulatory Commission used a serious of methods to improve the level of listed companies information disclosure.Now it is difficult for the outer people to acknowledge the inner information. So information disclosure causes special concern by the theoretical and practical circles.This paper,ingratiating the life cycle theory, make a research on relationship of information disclosure and product market exchange hoping to find efficient ways of enhancing its level, helps investors know more about a company’s operating condition. Studies have shown that the stronger the degree of competition in the industry,the higher the quality of information disclosure; in growing industries, companies which have competitive advantage are more motivated to improve the quality of information disclosure; in mature industries, companies at a competitive disadvantage are more motivated to improve the quality of information disclosure.