Mainland-Hong Kong Stock Connect And Transparency Of Accounting Information

Mainland-Hong Kong Stock Connect include Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect,they implemented On November 17,2014 and December 5,2016 respectively,it is a connectivity mechanism between Mainland capital market and Hong Kong capital market connectivity mechanism.On the one hand,Mainland-Hong Kong Stock Connect is China's first two-way opening of the capital market,it is significant in enhancing capital market linkage,broadening investment channels,deepening the exchange of information and capital cooperation between two places.On the other hand,the system has also brought very big changes in market supervision,investor protection,and analyst attention,has great impact on China's capital market.And transparency of accounting information as a comprehensive indicator of the quality of accounting information and an important part of the transparency of the stock market,it plays a vital role in the healthy development of China's capital market and social economic.The connotation and influencing factors of accounting information transparency are very diverse,and any change in the market environment may change the transparency of accounting information.Does the "Mainland-Hong Kong Stock Connect" system that combines opportunities and challenges affect the transparency of accounting information? If so,how does it affect it? These are the issues that this article will explore.Based on the samples of A-share market from 2010 to 2018,this paper uses the Multi-period difference in differences model to test the impact of the Mainland-Hong Kong Stock Connect on the transparency of accounting information,and draws the following conclusions:(1)the implementation of the Mainland-Hong Kong Stock Connect helps to improve the enterprise accounting information transparency;(2)the effect of the Mainland-Hong Kong Stock Connect on the transparency of the enterprise accounting information is more significant in the group that is less concerned by analysts;(3)the effect of the Mainland-Hong Kong Stock Connect on the transparency of the enterprise accounting information is more significant in non-cross-listed companies;(4)the effect of the Mainland-Hong Kong Stock Connect on the transparency of the enterprise accounting information is more significant in stocks with high capital participation in Hong Kong.Furthermore,this paper also verifies the effect of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect on the transparency of accounting information respectively.They all played an active role It shows that under the environment of emerging and transition economy,inadequate investor protection,and incomplete financial hardware facilities and institutional arrangements,the two-way capital market opening system of Mainland-Hong Kong Stock Connect has indeed played a positive role.Based on the research conclusions of this paper,I put forward some constructive suggestions,which are beneficial to improving the transparency of enterprise accounting information and giving full play to the advantages of market opening policies.