Accounting Information Transparency,Investor Confidence And Firm Value

The U.S.Securities and Exchange Commission first emphasized “transparency” in 1996.The organization also paid attention to transparency as a key indicator reflecting the quality of accounting information.The improvement of accounting information transparency plays a vital role in improving the quality of accounting information of enterprises.Since the transparency of accounting information involves the interests of external investors and plays an important role in the orderly development of the capital market,it is of great significance to explore the economic consequences of accounting information transparency in the capital market.In the capital market,confidence is more important than gold,the maintenance and enhancement of investor confidence is the foundation for a country's capital markets to achieve sustained and steady growth.The prospects for the future development of the company are the source of investor confidence.The fundamentals of the company are also the key factors that reflect the future development potential of the company.At the same time,accounting information is the core of judging the fundamentals of the company,and the high-quality center of accounting information is reflected in transparency and accounting.Information transparency is bound to have an impact on investor confidence.Investor confidence changes investor behavior,investor behavior acts on market stock market,what role investor confidence plays in corporate value,and whether transparency of accounting information plays a role in the impact of investor confidence on corporate value.These problems are all solved by this article.This paper studies the transparency of accounting information,investor confidence and corporate value through normative research methods and empirical research methods.Firstly,it clarifies the concepts of the three by combing the relevant literature in the past;Secondly,theoretically sum up and analyze the mechanism of action among the three;Finally,we sum up the existing researches of the scholars and draw the hypothesis of this article,which lays the foundation for the latter part.Different from The Main Board listed companies,this article takes a more special SME listed company as the research object.Inthis paper,the transparency of accounting information is measured by constructing a comprehensive index of surplus earnings and surplus smoothness.The investor confidence index is calculated by principal component analysis based on the market-to-book ratio,share-changing ratio and institutional investors' shareholding ratio.Using Tobin Q as a proxy for enterprise value.Constructing regression models based on existing hypotheses and empirically examine the relationships among the three.The findings of this paper are:The highly transparent accounting information has a significant positive promotion effect on the confidence of external investors;Positive correlation between external investor confidence and corporate value,at the same time,the positive correlation between investor confidence and firm value in firms with high accounting information transparency is stronger than those with lower levels of accounting information transparency;Disclosure of highly transparent accounting information can significantly increase corporate value,and external investor confidence is an intermediary variable in the transparency of accounting information to influence corporate value;The test also confirmed that transparency has a lag in the role of external investor confidence in corporate value.According to the conclusion of the study,this paper puts forward policy recommendations for the SME enterprises to improve the transparency of accounting information based on the perspective of investors.