Impact Of External Governance On The Information Disclosure Quality Of Family Business

Literally, "external governance" refers to the management system out of the company for guaranteeing that the behaviors of the management layer can maximize the stockholders’equity. There are different external governance modes in the capital market of different regions, for instance, the external governance of the enterprises in developed capitalist countries, such as England and America, etc. is dominated by the market discipline. Perfect capital market, laws and regulations, as well as powerful intermediary regulator, are the foundation of the smooth implementation of the external governance. To a certain degree, the external governance can supplement the internal control of the company and guarantee the stockholders’ equity.Ever since the past three decades after the reform and opening-up, a great batches of family enterprises surge out in the economic structure of China, but there are defeats in the corporate governance and intermediary markets. There are frequent cares in the fault information among the listed companies, such as Yinguangxia, Lantian, which will not encroach on the interest of shareholders, but highlight the necessity of external governance. And then, the study on how to clear about the relation between the corporate governance and information disclosure quality for the family enterprise and improve the status of information disclosure of family enterprise essentially will be of great realistic significance.The external governance mainly refers to the external environment, for instance, the supervision and guidance, etc. by the intermediary agencies and governmental departments, etc. At present, researches conducted by many domestic and foreign scholars are of great impact on the information disclosure of enterprise. As for the family enterprises in China, if there any such effect? It is the study emphasis of this paper. In this paper, the empirical analysis is conducted for the impact of external governance on the information disclosure quality of family enterprise, for trying to provide more empirical evidence to the improvement of information disclosure quality of family enterprise with the listed companies in Shenzhen Stock Exchange as the examples from the perspective of external governance.At first, the concept of family enterprise, external governance and information disclosure quality is defined, and it is appointed that the external governance is a significant element impacting the family enterprise information disclosure quality. On this basis, corresponding hypothesis and empirical model are constructed with the empirical analysis method, and the impact of five aspects, including the external market, accounting firm, creditor, China Securities Regulatory Commission and government on the family enterprise information disclosure quality is illustrated in detail.Based on the normative research and empirical analysis, the following conclusions are summarized.(1) The more sufficient the market competition of family enterprises is, the higher the information disclosure quality will be.(2) The external supervision of the creditor to the family enterprise will be helpful for improving the information disclosure quality of family enterprises;(3) The hiring of high-quality accounting firm will contribute to the improvement of information disclosure quality of family enterprise;(4) The external supervision of the supervision department (CSRC) for family enterprise will contribute to the improvement of information disclosure quality of family enterprises.(5) The reduction of governmental intervention will help improve the information disclosure quality of family enterprises.