CEO Power Intensity, Voluntary Information Disclosure And Corporate Performance Volatility

The validity of corporate governance should not only be reflected in improving the level of performance of the company, should also be reflected in the stability performance of the company risk. As the characters of "power pyramid top executives, to company management decision-making and strategic development have important role, so executive power in addition to affect the company's operating results, on the volatility of the company's performance will have a significant impact. The majority of the new board is small and micro enterprises, in the life cycle of enterprise start-up period and the growth period, company management instability and fluctuations in performance is larger. This paper uses NEEQ companies as a sample to explore the impact of executive power intensity on the performance of the company's volatility.At the same time, due to the voluntary disclosure of information to enhance corporate transparency, reduce information asymmetry, the executives exercise power to influence corporate performance volatility process more transparent, which influence the executive power and the volatility of the company's performance. So, this thesis uses the voluntary information disclosure as a moderator variable to explore how to influence the intensity of executive power and the company performance fluctuations, relationship.This article selected 66 companies listed in NEEQ from 2010 to 2014 as the research object, using the theory of individual decision-making, management hegemony theory and principal-agent theory analysis, using panel data random variable model and least square method to analyze the company's horizontal industry performance volatility and longitudinal performance volatility, and the use of instrumental variable method to further eliminate endogenous interference. Through theoretical and empirical research findings:(1) The intensity of the executive power is significantly positively correlated with the performance of the company, and is negatively correlated with the performance of the company. That is, the greater the intensity of executive power, the higher the company's performance, the smaller the company's performance from the market expectations of the normal performance of the degree. In the three new board companies, executive power in a certain time series has brought performance fluctuations, but this performance volatilityin line with market expectations of the company's performance volatility, making the company in the entire market volatility bias stability. High power made a "double-edged sword, shooting two birds with one stone" good effect.(2) The level of voluntary information disclosure has weakened the influence of the intensity of executive power on the performance of the company. The company's voluntary information disclosure level has improved the information transparency, reduce the supervision cost of the principal agent, reduce the information asymmetry, is conducive to incentive compatibility, the formation of external manager market pressure and reputation incentive, weakening the impact of executive power intensity on corporate performance volatility.