The Study Of The Impact Of Financial Reporting Transparency On Investors' Interest Protection

The events of China's listed companies violate the interests of investors constantly happen.Under the background of emerging and transition of the market,improving the transparency of financial reports,is the key to protect the interests of investors and promote the sustainable development of the capital market.In the condition of two rights separation and the unification of two rights,whether the financial reporting transparency and the protection of investors' interests existence difference,as well as how financial reporting transparency influence the protection of investors' interest,is the core content of this paper.This paper analyzes the connotation of financial reporting transparency and protection of the interests of investors,discusses the relevant theories of protection of the rights and interests of investors.This paper also expounds the causes and methods of the infringement on investors' interests,theoretically proves that the differences of infringement as well as the mechanism of the effects financial reporting transparency on investors' interest protection in the different cases of separation of two rights and unification of two rights.First of all,this paper builds a comprehensive evaluation index system of financial reporting transparency.Then in accordance with the standard that the company ownership belongs to the largest shareholder or actual controller,and the right to operate belongs to the chairman of the board or general manager,divides samples into two groups of separation of two rights and unification of two rights.This paper selects the relevant data from 2011 to 2015 in Shanghai and Shenzhen A shares of listed companies,confirmed financial reporting transparency were different as well as investors' interest protection in two samples,and furtherly tested the influence of financial reporting transparency on investor's interest protection.Finally based on results of the study,puts forward the corresponding policy suggestions to improve the financial reporting transparency and the level of investors' interests protection.The main conclusions of this paper are as follows:(1)in the company of two rights separation the financial reporting transparency can constraint management benefit expropriation quite well,alleviate the agency problem between management and investors,protect investors' interest.(2)in the company of two rights unification the role of financial reporting transparency constraint big shareholders expropriation is limited,it is difficult to ease the agency problem between large shareholders and small and medium-sized investors,unable to give full play to the role of protecting the interests of small and medium-sized investors.(3)at this stage,no matter in the separation of two rights or the unification of two rights companies,the protective effect of financial reporting transparency on the interests of investors is mainly achieved through the improvement of corporate governance,investor understanding and administrative supervision and punishment is difficult to play a role in protecting the interests of investors.