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On information the disclosure of information relating to the value of the company

Author: ZengWei From: www.yourpaper.net Posted: 2009-10-12 23:22:10 Read:
[Abstract] the separation of ownership and management information disclosure became effective way to reduce information asymmetry between owners and operators, and enhance mutual trust. Effective information disclosure can fully reveal the intrinsic value of the company, to enhance the value of the company. Investor relations management is the management of listed companies to achieve business value added strategic behavior, voluntary information disclosure is the core of the management of investor relations. Importance to investor relations management, good information disclosure, especially voluntary information disclosure, will be conducive to the enhancement of the value of the company.
[Keywords] information disclosure; company value; investor relations management

The capital market is a great degree of freedom of the market, investors and listed companies seeking each other in their respective goals: listed companies hope to demonstrate to the market the results of operations of the past success, reasonable, standardized corporate governance structure, business development prospects and orderly financial management, establish a market image of strength, the ability to fight for the trust of investors and business development needs adequate capital in order to get from the capital markets; investors hope to find here, respect for shareholders, can own interests to maximize returns on their investments, to meet their investment needs. In the face of a number of different industries, the varying quality of listed companies and investors how to determine their own investment object valuable funds turned into the capital of the listed company, the ideal value-added, listed companies, how to stand out, to get favor of investors to obtain valuable funds needed by the company's operations, the company's business objectives? information became to build bridges between investors and listed companies: enterprise business, financial condition, and other information disclosed to convey to the market, so that market participants to understand the actual situation of the enterprise, to determine the investment value of the enterprise, to make their own investment decisions. Listed companies due to their own information disclosure behavior and economic outcomes, is an important way to reflect its value.
This paper tries to do on the relationship between information disclosure and enhance the value of the Company and the ways one.

A principal - agent relationship established modern enterprise information disclosure system of direct motivation

Under the modern enterprise system, the owner of the enterprise in order to obtain the maximum benefit, usually commissioned by the company the right to operate to professional managers exercise, the formation of the phase separation of corporate ownership and management rights, the shareholders hopes to reap greater benefits for themselves. However, the this commissioned behavior itself is full of risks and uncertainties. First of all, when the formation of the principal - agent relationship, the shareholders of managers commissioned the first place, and not yet sufficiently reliable evidence that the manager promising shareholders the ability to create more wealth. Secondly, the manager is able to achieve the expectations of the shareholders, to achieve the expected return in the future, the managers did not fully grasp, because the entire market is full of uncertainty. At the same time, as trustee, the manager also there is obtained from shareholders at the principal - agent contract agreement with sufficient powers to carry out business activities and convention returns worried. These concerns and questions of the principal and the agent runs through the entire principal - agent activity always, this can be seen as information asymmetry between shareholders and managers whether performance.
In fact, this does not prevent the information asymmetry that eventually formed the principal - agent relationship. Because the existence of the trust relationship between shareholders and managers, owner operators they commissioned to complete the commissioned ability to target certain, at the same time, I believe the operators will be commissioned in accordance with their wishes and, apart from the In addition, the manager will not have a better choice. And, the trustee is satisfied the principal honor the remuneration commitments in accordance with their own expectations. Therefore, the commissioning party and the trustees of mutual trust is an important foundation formed by the principal - agent relationship. Information disclosure system has become an effective way to supervise and maintain trust between shareholders and managers. Enterprise managers report to the shareholders of the relevant information of the enterprise, is an obligation under the modern enterprise system, it enables shareholders to be able to understand the actual operating performance of the managers as trustee, at the same time, managers hope to make the disclosure of corporate information to shareholders believe they commissioned managers realize they commissioned and bring them to a satisfactory income. Information disclosure, operators hope to achieve the following purposes:
A report to the shareholders of the operation of the assets entrusted to fulfill the principal - agent contract signed with the shareholders. Entrusted with the operation managers to obtain shareholder fiduciary assets, as a special enterprise employment, need to report to the shareholders of the business situation. Financial information, for example, should include the financial position of the enterprise in a certain period of time, the changes in assets, liabilities and shareholders 'invested capital and results of operations, shareholders' understanding of the actual state of the invested capital, explained to shareholders entrusted with the operation during each entry operations, financial behavior, so that shareholders can evaluate the actual performance of the managers.
(2) provide a basis for investment decisions for investors and potential investors. Shareholders after the assets entrusted to the manager of operations, whether the enterprise continued to stay in business? Want to continue to expand the scale of operation or adjust their investment strategy? Manager of enterprise information as a basis. It enables shareholders to be able to carry out, directly or through intermediaries, judgment, verification. An important function of financial accounting is to provide decision-making information for users of accounting information.
Shareholders to provide a basis for performance evaluation of managers. Managers disclose company information, a major impetus to the shareholders they are entrusted with the operation during the performance of an appropriate evaluation of their addition to the requirement to obtain shareholder remuneration according to the principal - agent contract provisions, and also hope that through the disclosure of corporate good news, so that shareholders are managers to bring their own revenue beyond the commission contract, so as to get more rewards. The shareholders also hope that the disclosure of information from the company to determine whether the manager about management, shareholders delegate target, whether the damage to the interests of shareholders, which decided the incentive for managers and whether commission.
Company information disclosure, but also managers as a means of self-protection. Disclose the information to shareholders and other interested stakeholders, to make it understood that the managers entrusted with the operation of enterprises as confirmation managers commissioned in accordance with the shareholders' operation and management, the actions they take legal, commissioned in line with the shareholders' This is conducive to lifting of the fiduciary responsibility of managers to avoid non-operating liability risks.
5. Conducive to the sustainable development of enterprises. Managers disclose information of the company, in addition to meeting the needs of shareholders, and also hope to get the relevant departments of shareholders and society continue its business activities in the future to give financial support powers to enable it to continue according to the operation of corporate business strategy assets.

Second, information disclosure is to enhance the company's value important way

Mandatory disclosure and voluntary disclosure of company information disclosure can be classified according to their content.
Mandatory information disclosure of listed companies in accordance with the law, the requirements of the regulations as well as capital market regulatory authorities, in accordance with the prescribed format, within the specified time, the specific information to the outside world for disclosure of listed companies, annual reports, semi-annual report, etc.. Akerlof (1970) proposed the theory of "adverse selection" information asymmetry make the capital market as the second-hand car market as the superior and eliminating the inferior to defeat the "phenomenon, the capital market has become a" sub-standard "market, loss of functionality to optimize the allocation of resources, and even the investors to withdraw from the capital market, caused by the shrinking of the capital market and off. Information disclosure acts as the force of the laws and regulations, mandatory information disclosure system between companies and investors in order to solve the problem of incomplete information in the capital markets could lead to the "market failure" to establish the necessary communication of information, so that investors are able to obtain basic information for investment decisions.
Voluntary information disclosure of listed companies in addition to the mandatory requirement to disclose information outside the initiative and timely disclosure of all possible stakeholders to shareholders and other stakeholders have a substantial impact on the decisions, and to ensure that all shareholders have an equal opportunity to obtain information " (China Securities Regulatory Commission, the State Economic and Trade Commission, 2002). Voluntary information disclosure as a supplement and deepen the mandatory information disclosure, to improve the quality of information disclosure, and fully demonstrated the company's business prospects and the value of an active role. The practice of the foreign capital market investors dissatisfied with the quality of information disclosure of listed companies, the stock market is facing a "good faith" crisis, the voluntary disclosure of information on the strength of the companies to display their "core competencies", depicting the company's future prospects. important way to achieve effective communication and stakeholder. Relative to reveal the contents of the mandatory information disclosure, voluntary disclosure of information, is voluntary information disclosure strategy on its core competitiveness to the public capital markets "soft" information, it satisfies the investors select "satisfied" with the information needs of the investment target in today's increasingly competitive capital markets. Modern enterprise due to the separation of ownership and management rights of the owners and managers of the enterprises access to and understanding of the extent of the enterprise information inconsistent judgment and understanding, and thus the value of the company, which also led to a common value of the company The departure from the market price, on the performance of the capital markets for the company's share price is overvalued or undervalued. Despite the turmoil in the capital markets and downs, but in the long term, the company's share price has always been surrounded by fluctuations in the value of the company. Regardless of which method to define the value of the company can afford to ignore the key factors of the information. Information directly affect the behavior of investors, and ultimately affect the market price formation. As an important means to reduce transaction costs in the incomplete market information disclosure by investors concerned about corporate information to make an announcement to reduce the misjudgment of information asymmetry on the value of the company, so the stock price to reflect the maximum the company's value.
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