Information Disclosure Of Listed Companies’ Effect On Investor Protection

In the twenty years of establishment and development of China’s capitalmarket,due to historical reasons,it emphasis on financing function, lacks protection forinterests of investors,so it formed a imbalance pattern of strong financier and weakinvestor to a certain extent.As the mainly participant in market,investors often face withthe problem of asymmetric information,and in a weak position for information, it resultin many investors’ rights and interests are infringed,so it not only hit the investors’confidence seriously,but also affect the healthy development of the capital market.Howto realize the protection of the investors effectively in close relation to many major tasksuch as the sustainable development of China’s capital market,Economic growth andSocial stability.Through listing corporation’s information disclosure,investors can obtainaccurate and complete business performance and financial situation about the investedenterprise without delay,make reasonable investment decision,and reach the goal ofoptimizing their own interests.In a manner of speaking,Information disclosure is the keyto protect the interests of investors and optimize the allocation of resources.It is also thefoothold of this article. By analysing the mechanism of how listedcompaniesinformation disclosure play a role in investor protection and empirical test,this paperprovide theoretical support and useful practical evidence to Further improve Investorsdemand investor demand investor demand oriented mechanism for disclosinginformation.According to the research of scholars in china and other countries,this article startwith theory of investor protection and Information disclosure,focus on the mechanismof how listed companies information disclosure play a role in investorprotection,construct the overall framework of investor protection by two aspects,one isthe corporate governance function from outside to inside,the other is market pricingfunction From inside to outside.In the empirical analysis, this paper seize two importantissues about currently investor protection.The first one is how to reduce the controlling shareholder of the interests of minority shareholders occupation and the second one ishow to improve the investor’s effective recognition of the high quality corporation. Bychoosing A-share listed companies in Shenzhen board as samples from2011to2013,using the examination results from the Shenzhen Stock Exchange as the quality ofinformation disclosure of listed companies to disclose information about the overalllevel of substitution variables, the above theoretical analysis of the mechanism of anempirical test. In governance function, To disclosure of large shareholder capitaltakes up behavior to examine the influence of the information disclosure of listedcompanies on the effect of investor protection, choose other receivables accounts for theproportion of total assets as a big shareholder capital takes up the behavior of thesubstitution variables. After performing correlation test and multiple linear regressionanalysis concluded: the higher the quality of information disclosure of listed companies,major shareholders funds used to conduct the smaller the probability of occurrence ofsmall investors protective effect is better. On the pricing function, the influence of thelisted company information disclosure to investors capital supply is measured by theeffect of information disclosure to stock prices.Taking into account the performance ofthe stock prices of major investors to obtain the present value of future earnings, so theuse of future-oriented PEG ratio method to calculate the cost of equity financing incapital supply willingness to test for potential investors, which may reflect impact ofinformation disclosure of listed companies on the stock valuation of investors, in orderto reflect the effect of investor protection. After conducting correlation test and multiplelinear regression analysis concluded: the higher the quality of information disclosure oflisted companies, the lower cost of equity capital is protected and the interests ofinvestors willing to increase the supply of capital performance.Based on the aboveresearch findings,and Combined with the current situation of listed companiesinformation disclosure in China,this article put forward some advice on policy aboutListing Corporation information disclosure norms, protecting the interest of investors,and many other aspects.The innovation of this paper is that the author proposed governance function from outside to inside and pricing function from inside to outside. In order to establish theanalytical framework of the investor protection function, selecting the appropriatevariables to build the empirical analysis.