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Voluntary information disclosure of listed companies Problems of

Author: JiangXunLian¡¡ZhangDeRong From: www.yourpaper.net Posted: 2009-10-12 10:15:07 Read:
[Abstract] voluntary information disclosure of listed companies has autonomy, diversity, flexibility, uncertainty characteristics; Information disclosure includes background information and operating data, predictive financial reporting, social responsibility, human resources, environmental protection, information, etc. eight major categories; the value of information disclosure will help to improve the corporate governance structure, improve the integrity and reliability of the company's information, reducing the company's cost of capital and the cost of debt, and enhance stock liquidity and raise the stock price, to foster corporate social responsibility good image.
[Keywords] voluntary; disclosure; cost-effective; value analysis

A voluntary information disclosure issues raised

Disclosure of the contents of the financial reports of listed companies can be divided into mandatory disclosure and voluntary disclosure. Mandatory disclosure is in accordance with the Financial Reporting Bill, the Accounting Standards for Business Enterprises and other relevant laws and regulations, the requirements of the information that must be disclosed in the financial report. Voluntary information disclosure is the generally accepted accounting principles and the absence of relevant laws and regulations require companies to voluntarily disclose information. Currently, research on the disclosure of accounting information in China and more focus on the mandatory disclosure of voluntary information disclosure related content research and practical activities carried out far enough. With the rapid economic development of our society, the complexity and uncertainty of the modern business activities increasing, on the one hand, the existing mandatory information disclosure will inevitably difficult to meet the information needs of the user; the other hand, the face of China's capital market step-by-step development, increasing the effectiveness of the capital market, the business management department there is the power of voluntary disclosure of the relevant information, voluntary disclosure of information will show a growth trend. To this end, this paper the main categories of information, should pay attention to the issues and the value of the main features of the voluntary disclosure of information, analysis focus on.

The main features of voluntary information disclosure

1. Corporate autonomy. Mandatory information enterprise shall not be considered a cost-effective and should be publicly disclosed information, regardless of its content or form, the state has a unified specification, companies can only obey. Voluntary corporate disclosure is an independent sexual behavior, it is the business management department according to the actual situation of the information needs of the users and enterprise itself determined that the disclosure of information. These are closely related to the information users important information, select the disclosure or non-disclosure, and choose what kind of disclosure forms, depends largely on the judgment of the enterprise management department of the importance of information and cost-effectiveness comparison. It can be said that the enterprise has the discretion and decision-making power of voluntary information disclosure is an important difference with mandatory disclosure.
2. Content diversity. The voluntary information contains all the important information that affect the financial position, results of operations and cash flows. These "important information" from the space range of both internal and environmental information, and external environmental information. From the time range, both established and historical information, there are predictions of the future. From disclosure in the form of both quantitative information but also qualitative information. From the measurement methods, both measured using the currency of information, there are non-monetary measurement information. Voluntary information such diversified characteristics, and no doubt that it has a relatively extensive and diverse content.
3 in the form of flexibility. Associated with voluntary diversity of content is the flexibility of its disclosure form. View from the domestic and international practice, the most common way to disclosure of the text and tables. To illustrate the trend of the development of the project, and also often use graphs and histograms. Carrier disclosed in its annual reports, mid-year report, interim report, the news conference. Voluntary information content diversity and forms of flexibility are complementary: the variety of eclectic content requires disclosure form, flexible form, in turn, promote the diversity of content.
4 Disclosure uncertainty. This feature is specifically manifested in two aspects: First, the contents of the uncertainty that voluntary information content is no clear system specifications or requirements, it depends mainly on voluntary disclosures exist or occur, and these matters corporate finance. The second is the uncertainty of the way. Uncertainty of the voluntary disclosure of information on the contents of its disclosure carrier the format indicators set arrangement with uncertainty, it either own determination by the enterprises in accordance with their actual situation, or by the provider based on the need to different ways to be described.

Three major categories of voluntary disclosure of information

Voluntary disclosure of information in general the following categories:
Background information and operating data. Background information, including the broad objectives of the enterprise as well as to business strategy to achieve these goals, the impact of the industrial structure of the enterprise; operating data, including statistical data related to revenue, market share, quality, and productivity data, employee participation and satisfy the indicators, and so on.
Enterprises are facing opportunities and risks and corresponding measures. Including the opportunities and risks brought by the country's macroeconomic policy adjustments; industrial restructuring led to the opportunities and risks; enterprise diversification, asset restructuring opportunities and risks; development of new areas of opportunities and risks as well as enterprises face the opportunities and risks will be taken what initiatives and Countermeasures. Major opportunities and risks facing enterprises and disclosed to information users to take appropriate measures to give people real, objective and comprehensive feeling, can improve external reporting trustworthiness.
Predictive financial reporting. It is the management department based on assumptions of future economic conditions and the behavior of the program, the report of the company's future financial position, operating results and cash flow forecast. Predictive information with greater subjectivity, but there is still a large reference value of its information users. Currently, some large companies often provide forecast information for 1 year or in the future during the operations and profitability levels.
4 price changes accounting information. Some countries (such as Britain and the United States) had asked to meet certain conditions in the dramatic price changes, large companies to provide the general price level, or the current cost adjustment in the financial statements prepared under the historical cost accounting statements, some small and medium-sized companies also voluntarily follow suit. With the mid-1980s, Western countries price movements slowed down, added revealed mandated to be canceled, but the business will still be able to voluntarily disclose accounting information about price changes. Financial report with the price changes, "such as the United States in 1986 as an alternative to SFAS33 SFAS89" requirements "to" voluntary ".
5. Internal control report. It is the business management department in accordance with the standard of internal control effectiveness evaluation, the results of the assessment will be provided to external information users report the effectiveness of internal control design and implementation of the enterprise. In the U.S. Although the SEC does not require mandatory internal control report, but some companies have voluntarily provide some form of involving the internal control management reports. Mc-Mullen, Dorothy and Ragahunandan K (1996) of the 2221 Annual Report for 1993 show that 742 internal control report, the proportion of 33.4%.
Social responsibility, human resources, environmental protection information. In some countries in Europe and the United States since the 1960s, more and more attention to social responsibility, human resources and information disclosure. 1976 "happiness" magazine announced the top 500 large companies survey showed: on social responsibility of the company amounted to 456, accounting for 91% of all surveyed. In 1980, the UK Accounting Standards Board published a book of company reports, encourage enterprises to prepare social responsibility report, outside of the traditional statements addendum to the value-added table, workers report a series of social reporting.
Unrecognized intangible assets and research and development activities. Generated Goodwill, enterprise and customer and supplier relationships unrecognizable, it is difficult indeed refers to the intangible assets in the current financial statements failed to listed enterprises can be disclosed in the analysis report and description, reflecting its contribution to the competitiveness of enterprises. Enterprises can also disclosed on R & D spending, the current results and future strategies, R & D activities to bring the competitive advantage.
8 main products. Good products and technology to the production of the product is great significance to the sustainable development of enterprises. The main product performance, customer satisfaction, companies can disclose; For product sales, market share, as well as the contribution of the main business income; related products may improve and forecasts of future supply and demand conditions, and other information.
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