Industry Concentration And Corporate Disclosure Policy

Listed companies are important parts to the development of China's economy,and the quality of its disclosure information has important values for the users of accounting information.At present,there are a large amount of problems such as the managers don't want to disclosure the information about their company,or even disclosuring the information,the quality of the disclosure information is too low.Our ariticals analyze these problems from the perspective of the proprietary cost theory,referring to the proprietary cost would lead the information of the disclosure company taken advantage by their rivals,and the behavior of disclosuring has a bad influence on the disclosure company?Jovanovic,B.1982?^[1].In hence,in order to avoid the proprietary cost during the process of the disclosure,listed companies with higher industry concentration tend to adopt the conservative information disclosure policies.Our paper is based on the article of Ashiq Ali?2014?^[2],constructing the models of OLS and the first-order difference model,using all listed companies in China from 2010 to 2015 as our research objects.We divide the information disclosure policy into two different types,the frequency and the quality of information disclosure respectively.Finally,we find that there is a significant negative relationship between industry concentration and corporate information disclosure policies,and after considering the characteristic variable of the corporate such as the innovation capacity,financing constraints,and ownership concentration,we find the innovation capacity could weak the negative relationship between the industry concentration and corporate information disclosure policies while the innovation capacity has no effect on the industry concentration and the managers'quality of the disclosure lag for two years.The innovation capacity would weak the relation between the industry concentration and the managers'quality of the disclosure lag for one year,the reason may be the information asymmetry between the managers and the market.,managers should weigh the proprietary cost and disclosure benefits.From the perspective of analysts,the innovation capacity has no effect on the relationship between the industry concentration and disclosure qulity,because there are a large amount of factors can effect the business performance,if the innovation capacity couldn't meet the needs of consumers,the managers can't improve the disclosure quality from the perspective of analysts.The financing constraints would strong the negative connections between the industry concentration and the frequency of the manager information,however,it wound weak the relationship between industry concentration and the standard deviation of the analyst's earnings forecast,all these show when the company faced with a greater pressure on financing constraints,the manager of the companies which are in a higher industry concentration would decrease the frequency of disclosuring but improving the quality of disclosuring.At last but not the least,equity concentration doesn't have any effect on the industry concentration and disclosure frequency,and it has no influence on the relationship between the industry concentration and disclosure quality.