Ownership Balance, Board Governance And Timeliness Of Annual Report Disclosure

Nowadays,capital market of China is constantly developing and improving.Many investors are concerned about the transformation in capital market of China.More and more investors participate in this capital market.They consult the accounting information of enterprises,which is the most convenient way to know about the market they have stayed in,and is also the most fundamental way to disseminate the information of the capital market.So the quality of accounting information attracts more attentions with the development of capital market in China.Timeliness is one of the important basis to evaluate the quality of accounting information.Whether annual report disclose in time or not affect the quality of accounting information.There are many factors which can affect the timeliness of annual report disclosure.This paper commences from two aspects of corporate governance—equity balance and director governance,which are rarely focused by previous studies.By using the data of annual reports of enterprises in 2009-2013,we analyze the relationship between the two aspects and the timeliness of annual report disclosure in theoretical and empirical way.We draw following conclusions:(1)When the stock proportion of the largest shareholder is small,ownership balance is significant negative correlation with the timeliness of annual report disclosure,when the stock proportion of the largest shareholder is large,ownership balance is significant positive correlation with the timeliness of annual report disclosure;(2)Better performance of the directors will enhance the scale effect of the board of directors,so that annual report will be disclosed earlier;(3)If the workplaces of the independent directors in financial background are the same with the location of the company,annual report will disclose earlier;(4)Moderate ownership balance can improve the timeliness of the annual report by enhancing the effectiveness of board governance.According to the conclusions,we give some suggestions to improve the timeliness of the annual report,such as shortening the time limit of annual report disclosure appropriately,making ownership balance play its full role, improving the board governance efficiency and so on.