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Company information disclosure mechanism of investor protection role.

Author: LanWenYong From: www.yourpaper.net Posted: 2010-04-05 18:21:47 Read:
[Abstract] information disclosure of listed companies on the operation and function of the equity capital markets play a central role to play fair, maintenance information, improve information efficiency is to protect the interests of investors, the key to achieve the optimal allocation of resources. Decision mechanism of investor protection function of China's listed companies to explore the information disclosure mechanism with investor protection and market information asymmetry degree of information disclosure regulation and accounting system for the reform of China's securities market, improve the provision of the appropriate theoretical and empirical basis.
Information disclosure mechanism [words]; investor protection; corporate governance


Although China's securities market has only gone through 17 years, but in the past ten years, the stock market has undergone enormous changes. As of June 30, 2007, the number of listed companies of Shanghai and Shenzhen reached 477, with a total market capitalization of $ 166 23.28 billion yuan, equivalent to 78.8% of GDP in 2006, its total market capitalization. At the same time, the Shanghai and Shenzhen account number is increasing. As of August 6, 2007, according to the statistics of the China Securities Depository and Clearing Corporation Limited, Shanghai and Shenzhen stock account a total of 11 1246200. China Securities Regulatory Commission Chairman Shang Fulin has pointed out: "The capital market has become an important part of the socialist market economic system, optimize the allocation of resources, raising funds to improve the corporate governance structure, and promote the reasonable adjustment of the economic structure, promoting the reform of the financial system, and many other play a positive role indispensable for the further development of the capital market, which has laid a good foundation. The securities market has become an important part of China's economic and social life. China's securities market an increasingly significant impact on the economy, has become one of the major stock market in the Asia-Pacific region. Due to the increasing importance of the securities market, how to ensure their normal operation, and how to improve its efficiency, and how to promote the emerging capital markets mature, becomes more and more important.

Second, the need to protect the interests of investors

China's securities market is emerging and transitional period, in all respects, there are many imperfect place. Cases of recent years, China's macroeconomic stability and healthy development of the stock market movements and economic development goes against the stock market remains in the doldrums, the existing danger of being marginalized, the stock market can not be a "barometer" of economic change. Possible reasons for China's securities market in more than 10 years in the development process, the emphasis on the growth of the size of the market, such as the number of listed companies, the number of investors, funding amount, legal regulations quickly formulated and promulgated the "quantity" Expansion on how to improve the "quality" of China's securities market as a whole, it appears that sufficient attention. Only improve the quality of the securities market information disclosure, play the effectiveness and efficiency of the corporate governance mechanism securities allocation of resources, and to protect the interests of investors, so as to improve the overall effectiveness of the securities market, is the ultimate purpose of the establishment of the securities market.
Objectively speaking, the course of the development of China's securities market, although the major groups of dispersed small and medium-sized group of investors is China's securities market capital supply, but the characteristics of the small and medium-sized investment groups is the large number involved in a wide range, a more decentralized organization, they usually You can only access to the public information of listed companies. Compared with other investors, this group is relatively small due to the number of holdings, the high cost of participation in corporate governance, and is easy to form the "free-rider" phenomenon, which makes small and medium investors in the securities market in a relatively weak position. In addition, due to the long history of China's securities market development time, the system construction is lagging behind, breed more and more problems, especially the controlling shareholder of the listed companies to use its controlling stake encroachment on the rights and interests of medium and small investors phenomenon despite repeated prohibitions. Although management increased supervision, and clearly put forward to the effective protection of the majority of investors, especially small and medium investors' rights, but with little success. "The premier economic problems facing our country, is to protect the interests of investors, maintain investors' confidence in the market system." U.S. Securities and Exchange Commission, Arthur Levitt (Arthur Levitt, 2001), spoke highly of the importance of building a market economy investor protection.
In fact, the country's securities market regulations and regulatory regime are at the core in order to protect the interests of investors. Go into effect January 1, 2006, the Securities Law of the People's Republic of China, its spirit is from the law on the securities market to be regulated in order to protect investors' interests will not be harmed. However, it should be soberly aware that the problem of the securities market is also growing more and more serious, from the actual situation of the development of China's securities market more than a decade, I believe that the most serious problem than the disclosure of false information, and caused by a vicious misleading investors. False information disclosure serious damage to the normal market order, in a gray state of the market environment, and greatly harm the interests of investors. So, how to protect the interests of investors? Although the macro-social, economic, legal background, corporate governance affect the protection of investors' interests, but in these factors, I believe that the disclosure of information is a key link to investor protection. As noted by former U.S. Securities and Exchange Commission Chairman Yasser Levitt (Arthur Levitt), "How do we prove to investors that the market is fair? Forced those who took investors' money to tell the truth, say all the truth, the truth about the enterprise if they do not do so, we must be ruthless to be punished ". Scholars have called this process "information asymmetry correction, and we have a simple name: investor protection.
The soul of the securities market is the openness of information, completeness and timeliness of disclosure, it is to maintain the securities market of the cornerstone of the "Three" principle, it is impossible to form a transparent market environment, it is impossible to establish the fair market order, medium and small investors' interests will inevitably be compromised. Based on this understanding, I believe that China's securities market is facing the most important, most urgent, most need to solve the problem is to establish a fair market order, to create a transparent market environment, strengthen the construction of the legal system of the securities market, from the institutional and market environment the perspective of protecting the interests of investors. Well, in the context of China's transition economy, listed companies' information disclosure mechanism exactly how to protect the interests of investors? Various elements of information disclosure mechanism - the quality of the information, the basis of measurement, disclosure content, disclosure, disclosure time disclosure frequency plays what role in investor protection? influence behind the information disclosure of listed companies and motivations what? after the implementation of the new guidelines, the information disclosure mechanism investor protection function will happen to, etc., these are urgent need to discuss and solve theoretical and practical problems.

Third, based on the concept of investor protection under the quality of accounting information

The continuous improvement and development of the securities market makes the role of accounting information is becoming more and more prominent, the current information disclosure by listed companies in the stock pricing and corporate governance plays what role, has become the focus of accounting research in the securities market. In essence, accounting is an information system. Accounting is an information theory on the high efficiency of economic operators. In the evolving process of accounting theory and practice, ideas and voices to protect the interests of investors for a long time. DRScott early in 1941 recognized that, should adopt some of the social and ethical standards as the basis of building a accounting theory (Practice): First, the accounting procedures of all interest groups must treated fairly; financial reporting should remain true fraud; accounting data should be "fair" or non-biased. Of Wang Yuetang, PLANNING AND MARKET (2001), combined with the status quo and development trend of China's capital market, to explore user demand outlook and investor protection concept of how to look at and learn from the evaluation of the quality of financial reporting in the West, that the standard setters and market regulators to establish investment protection concept has important practical significance to regulate the market operation in China.
The concept of user requirements and investor protection concept are two basic points to evaluate the quality of financial reporting. User demand concept that financial reporting should make investment, credit and similar decisions for the users of the report provides useful information; investor protection concept that the quality of financial reporting depends primarily on whether the financial report full and fair disclosure to investors. Investor protection concept that high-quality financial reporting should provide full and transparent financial information, and should not be made to report users confused or misleading. Table 1 lists some investor protection concept evaluation of accounting principles and the quality of financial reporting standards (Wangyue Tang, 2001).
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