The Impact Of Annual Report Disclosure Quality On The Minority Investor Trust

The annual report disclosure of listed companies is the most important source of information for minority investors to obtain listed company related information.It is passive to protect the legitimate rights and interests of minority investors by relying solely on the supervision of information disclosure of listed companies.At present,the disclosure quality of domestic listed companies is uneven,and the management of listed companies should strengthen the management of the disclosure quality of annual reports.Moreover,China is facing the lack of social trust and investor trust.Small and medium-sized investors in a weak position of information are the major players in China's current capital market.The establishment of trust and effective relationships between minority investors and listed companies is highly related to the healthy development of the securities market.Therefore,the management of listed companies should pay more attention to the trust management of minority investors.This article uses the cross-sectional data of SSE 180 Constituent Index as the research object in 2016 and the research methods include descriptive statistics,correlation analysis and regression analysis.The article verifies that the improvement of annual report disclosure quality will significantly increase the trust of minority investors.It also examines whether the relationship between the annual report disclosures and the trust of minority investors is affected by regulatory effects.The main conclusions of the interaction effects include:(1)That whether the listed company management chooses the Big Four accounting firms to conduct the audit has an enhanced regulatory effect on the relationship between the annual report disclosures and the trust of minority investors;(2)In the fourth quarter of the year,securities analysts' average optimism bias have a distracting effect on the relationship between the annual report disclosures and the trust of minority investors;(3)The degree of attention that security analysts pay in their reports has an enhanced regulatory effect on the relationship between the annual report disclosures and the trust of minority investors.The innovative contribution of this paper lies mainly in the following four aspects: first,the paper is aiming at exploring the implications for the management from China listed companies on how to manage the minority investor trust and providing some policy advice for other interested parties.Second,this paper strives to quantitative analysis.Given the fact that there is not a perfect guide nor an assessment for the annual report,this paper has made a useful exploration and analysis of the current Chinese annual report disclosure with quality standards and quantitative rating indicators,as well as quantitative results;third,this paper delivers some new research point of view.This paper further verifies and examine whether different expected moderators have moderated effects on the relationship between the quality of the annual report and the minority investor trust and explains the corresponding types of interaction.Last but not least,it expands the perspective of research.The perspective of studying the relationship between listed companies and minority investors has been extended to taking the influence of accounting firms and securities companies into consideration.