Research On The Influence Of Bank Competition On Corporate Information Transparency

Information transparency plays an important role in the normal operation of the capital market and the investment decisions of investors.In recent years,the news media frequently expounded the phenomenon of financial fraud of listed companies and the punishment of unregulated disclosure of information,which not only damaged the interests of investors,but also seriously affected China's capital market and securities market.Improving information transparency is conducive to optimizing the way of information transmission in the market,improving the information structure of traders and improving the efficiency of market resource allocation.At present,scholars study the factors affecting the transparency of corporate information from the perspectives of legal environment,external audit and corporate governance,but few scholars analyze this issue from the perspective of the financial environment in which the company is located,especially from the perspective of bank competition.Therefore,we use the data of non-financial listed companies listed on the Shanghai and Shenzhen Stock Exchanges during the period of 2006-2017 to study the impact of bank competition on the transparency of corporate information.Firstly,this paper combines agency cost theory and information asymmetry theory to analyze the impact of bank competition on corporate information transparency.For banks,information asymmetry will increase the agency cost and default risk of the bank.High information transparency can alleviate the moral hazard and adverse selection caused by information asymmetry.The improvement of bank competition will aggravate the role of the bank as a supervisor,thereby supervising the borrower's business and financial status,improving the company's information transparency.For enterprises,the increase in bank competition has led to an increase in the number of banks that companies can choose to borrow,which will enable enterprises to consciously and transparently disclose information to improve their bargaining power and reduce borrowing costs.In the empirical analysis section,this paper measures the bank competition by the concentration ratio of the banking industry.It corrects the transparency of the company's information by correcting the accrued profit manipulation calculated by the Jones model,and uses the fixed effect model to return the bank competition and corporate information transparency.The test results show that:under other conditions,bank competition will increase corporate information transparency;In the sample-subject regression,the positive impact of bank competition on information transparency is more pronounced in companies with poor governance,non-state-owned,and small companies.Further,this paper discusses the impact mechanism of bank competition on corporate information transparency from the perspective of borrowing costs,and studies the relationship between internal governance mechanism and external governance mechanism.It is found that the transmission mechanism of bank competition to corporate information transparency It is affected by the cost of borrowing or the term of the loan,and there is an alternative relationship between the internal governance mechanism and the external governance mechanism.In the robustness analysis part,this paper replaces the bank competition index with the concentration of the four major and five major national commercial banks,and replaces the company's information transparency index,policy impact,instrumental variable method and regional subsamples with the sub-samples of the information disclosure quality disclosed by the Shenzhen Stock Exchange.The robustness test support the conclusions of this paper.From the perspective of bank competition,this paper studies its impact on corporate information transparency,enriches the research on corporate information transparency,and provides a new idea for the company's information transparency research.At the same time,it also verified the effectiveness and policy of the market access easing policy of banks in different places,and provided reference for corporate governance.