Analysis Of Influencing Factors Of Information Asymmetry:Evidence From Listed Companies In China

In recent years,with the development of domestic capital market,investors have increasingly higher requirements on the quality of information disclosure of listed companies,and they are increasingly concerned about the causes of the decline in the quality of information disclosure.Using the data of Shenzhen A-share companies from 2007 to 2017,this paper examines how the internal information asymmetry of listed companies influence the external communication quality.Using the binary logit model,we can find that management issues higher quality earnings forecasts and higher quality financial reports when the internal control quality is higher.We also find that industry structure complexity appears to reduce the quality of management's communication with external market participants.However,we find no evidence that the geographic complexity affects management's communication with external market participants.In addition,this paper takes Taihai Manoir Nuclear Equipment Co.,Ltd and Shanxi Oriental Material Handing Co.,Ltd as two cases to further verify the conclusion of the empirical study.According to the above conclusions,aiming at the causes of the asymmetry between internal and external information of listed companies,we give the recommendations below: improving the quality of internal control of listed companies and improving the internal control system;keep rational and do not be blindly confident in the development of the industry;improving the quality of the information disclosure and preserve the capital market order.