Readability Of Annual Report,Equity Concentration And Investor Protection

Investor protection is a crucial part of China’s capital market management at present.One of the key points to ensure the process of development is smoother of China’s securities market,and guarantee protect the interests of moneymans that all sectors of Chinese society need to pay attention to Sound investor protection measures can effectively reduce information asymmetry in investor market.To ensure that investors in the true and reliable information to make the right and reasonable decisions,thus the China’s investment market will have long-term healthy and stable development.An article is meaningful only when it can be read and understand.The same is true of information publish by public companies.Investors can only by looking and comprehend the meaning of the information disclosed.Although the securities regulatory Commission of various countries has been emphasizing the disclosure of easy to understand information,but the information disclosed by listed companies is far from the advocated by the SECURITIES Regulatory Commission,especially the annual report issued by listed companies,it’s readability has been not high and shows a trend of deterioration.For investors,annual reports are an important basis for their investment decisions.What impact will the declining readability of annual reports have on investor protection?This paper will carry out systematic empirical analysis and test.This paper takes the annual reports issued by China’s A-share listed companies in 2016-2020 as a sample,and finally obtains three indicators with the help of python to collect data and calculate data:annual report length,reverse component density,and accounting terminology density,which are used as alternative variables for the readability of annual reports.Empirically examine the impact of annual report readability on investor protection and what role equity concentration plays in it.Further analysis,the sample data is divided into high financial leverage and low financial leverage,stateowned enterprises and non-state-owned enterprises,to explare whether is difference in regulatory role of equity concertration in with different financial leverage and property rights.The study show that:(1)The Investor protection declines as annual reports become less readable;(2)The equity concentration plays a significant negative adjustment role between the readability of the annual report and the protection of investors;(3)The negative adjustment effect of equity concentration in highfinancial leverage enterprises is more obvious than in low-financial leverage enterprises;(4)The negative regulatory effect of ownership concertration is more prominent in state-owned enterprises than in is not state-owned enterprises.This paper makes a robustness examine to strengthen the dependability of the research conclusion.Finally,we proposed the targeted policy recommendations,the boundedness of the essay,and future research prospects by the research conclusions.