Research On Decision Mechanism Of Voluntary Information Disclosure Of Listed Company

With the development of science-technology and constantly improved capital markets, we have entered the era of information economy from traditional economy. Stakeholders have higher demand on the depth and the breadth of information,at the same time. Mandatory disclosure of information can not fully meet the needs of investors, listed companies are willing to disclosure more information voluntary.Fully disclosure of information not only can improve market transparency but also can ease information asymmetry between market participants.But disclosure too much is unfavorable for listed company. In order to measure the optimal amount, we must consider the costs and benefits of information disclosure at the same time. The paper will introduce the cost-benefit analysis and base on the perspective of product market competition to systematically analyze the critical value.First of all,In order to construct the cost function and the benefits function, we divided the production factors of product into tangible and intangible.The cost of the voluntary disclosure information is divided into inevitable cost and probable cost.The benefits of the voluntary disclosure information is divided into inevitable benefits and probable benefits. To build up the cost-benefits function exactly, we introduced two variables P and K.P represents the Probability of cost or revenue because of voluntary disclosure.K represents the coefficient of cost or revenue because of voluntary disclosure.Secondly,through the analysis of the cost function and the revenue function of voluntary disclosure information of listed company,We can get the marginal cost function and marginal revenue function.According to the goal of profit maximization we can obtain the critical value of voluntary disclosure information of listed companies.So we can concluded that the critical value of voluntary disclosure information of listed companies in the traditional economy is the minimum,but critical value of the information economy era is the maximum.Finally, this paper respectively analyzed the critical value of voluntary disclosure information of listed companies under the four different market structures.we can concluded that voluntary disclosure of information of the listing Corporation is complete and sufficient in the perfectly competitive market structure.the listed company of the monopoly competitive market structure will disclosure more.In the Oligopoly market, companies at a disadvantage tend to disclose more information, the company in the dominant position will disclosure less.In the complete monopoly market,the company will reduce the amount of information disclosure.With the advent of the era of information economy, listed companies of perfect competition market structure, monopoly competition market structure and oligopoly market structure are tend to disclose more information, but listed companies of the complete monopoly market structure will tend to disclose less information.