Risk Information Disclosure In Annual Reports And Firms Invest Efficiency

In recent years,in the turbulent global macroeconomic environment,for the sustained and healthy development of companies,the company will pay more attention to the risk management.The external investors need to know the enterprises' risk information in the process of creating values.The demand gradually increased,investors have not satisfied with the financial accounting information,and pay more attention to the qualitative information in the corporate disclosure.Information disclosure is not only an important channel between enterprises and investors,but also is a foundation of enterprise investment decision.Investing as an important part of enterprise value creation,needs to use the relevant information to make efficient investment decision.Risk information is a kind of uncertain information,which may reduce the degree of information asymmetry,may also increase the risk perception of investors.When the risk disclosure of information as public information to improve the transparency of information,which can reduce the problem of asymmetric information and adverse selection so as to improve the efficiency of business investment;when provided with more risk factors of risk disclosure,investors risk perception will increase to reduce the enterprise investment efficiency.Therefore the enterprise investment efficiency is the ideal situation,from the perspective of the enterprises.This article from the information disclosure of information asymmetry theory and agency problems,explore the characteristics of annual risk information in China,and test whether it will affect the efficiency of investment,and whether the disclosure will be affected by the environment and investment environment is different and have different effects.Use the risk disclosure data from 2007-2013's annual reports.Use analysis method to establish risk information disclosure index to quantify the risk information disclosure.Through the investment model of Richardson(2006)to calculate 2008-2014's corporate investment efficiency.This study found that:(1)the more risk information disclosure in the annual reports,which can significantly improve the listed company's overall investment efficiency,and restrain the excessive investment behavior of the company,to some extent alleviate the shortage of investment behavior but the effect is not obvious;(2)this paper also conducted a series of robustness and sensitivity tests show that the results of this study are more robust;(3)we found that risk information disclosure improve enterprise investment efficiency through reduce the degree of information asymmetry.Further study found that:(1)From the risk information disclosure environmental,when the company is state-owned enterprises,poor corporate governance,external investors professional information processing ability,the fluctuation of macro economy is more significant;(2)From the investment environment:when the manager is overconfident,more cash flow,more growth opportunities,risk information disclosure of the annual report of the investment efficiency is more significant.The conclusion of this study shows that China's risk information disclosure support for the view of the convergent argument,that the risk of convergence in the annual report of other public information the information of the existing risk factors and unexpected events are explained,reduce the degree of information asymmetry,and then improve the efficiency of investment.This paper uses text analysis method to measure the risk disclosure,provide a reference for domestic research on text analysis;this paper explores the economic consequences of the risk information disclosure from the perspective of the enterprise,and study the special kind of information,make further subdivision,enrich the information disclosure documents.Further,these results can provide a reference for China's regulatory policies,management disclosure policy selection and investors' investment decisions.