1、A Study on the Supervision System with Voluntary Information Disclosure in Chinese Listed Companies Abstract The voluntary information of listed companies is based on corporate image, the investor relates, which is to avoid lawsuit risk besides the compulsory information disclosure. The information,
2、 which the companies disclosed on their own initiative, is the important part of disclosure information. It is an effective way that demonstrates their core competitive ability. The author analyzed the problems on voluntary information disclosed, which existed in Chinese mainland listed company, pro
3、posed the suggestion of constructing supervision system which listed companies voluntary information to disclose. *Keywords: Listed companies, Compulsory information disclosure, Voluntary information disclosure, Supervision System As the expansion of the increase of the number of listed companies an
4、d the increasingly drastic market competition,the competition has become more difficult in more and more listed companies. In order to catch the scarce resource-the capital, companies tend to choose the way of Voluntary information Disclosure. Listed companies,with voluntary to disclose the informat
5、ion refers to corporate image, the investor relation, avoid lawsuit risk besides the compulsory information disclosure. However, the supervision system is not good enough； the information disclosed voluntarily is hard to be proof the truth. Therefore, it becomes more and more important to build the
6、supervision system with voluntary information disclosure for listed companies. 1. Motivation of Compulsory information disclosure Information, the Voluntary disclosure, is the executives in listed companies on personnel benefit to disclose on own initiative. According to the economic theory of the e
7、conomic man rationality, the superintendents balance the behavior and do not take, completely based on the benefit and this behavior which is the costing. The superintendents decision-making is also based on the cost benefit analysis, if the voluntary information disclosure brings the benefit is lar
8、ger than the cost, then the superintendent can carry on voluntarily disclosed, otherwise, the superintendent rather does not carry on the voluntary information to disclose, their manners will change with the cost income relations changing. (Kai Xiang, 2004) With the China capital market gradually de
9、velopment, the business management authority can reduce the average capital cost, enhance the financial analyst and investors interest, enhance company confidence level, improve investment relations, stand out company competitive advantages, enhance company stocks market fluidity, but also may reduc
10、e the companys lawsuit risk ,because the disclosure is not enough and so on, by disclosing voluntary information besides the compulsory information disclosure. The China capital market information disclosure also can gradually move to the stage of paying equal attention to voluntary and compulsory d
11、isclosure, not the simply regarding of the compulsory disclosure, the voluntary information disclosure will certainly to be the effective way,by which listed companies can demonstrate the core competitive ability, communicate with the stakeholders, and describe the company future. (Xianzhong Song, 2
12、006) 2. Content of Compulsory information disclosure Listed companies, with voluntary to disclose the information is refers to corporate image, the investor relates, avoid lawsuit risk except for the compulsory information disclosure. Learning from foreign listed companies experience of disclosing i
13、nformation voluntarily , and according to the situation in China, the listed companies voluntary disclosure of information include: The forward-looking information, based on the companys “core competence”. It contains the operation,the business plan, strategic planning, business environment and so o
14、n. All of information can help investors to make rational investment judgments and decision-making； Information communicated with the market intermediaries and investors or the evaluation information from them； Information of human resources. Under the conditions of the knowledge economy society, hu
15、man capitalbecomes more and more important. Particularly in the high tech, high-growth companies, employees are the companys most valuable asset. Research shows that these companies were significantly better than other companies,in the above-mentioned aspects of the voluntary disclosure of informati
16、on； According to the accounting standards of the conservative principles, there is also lack of proper disclosure rules or low in requirements disclosure, which is useful for the investment decision-making, such as fair value； Corporate governance, environmental protection and social responsibility
17、do not have mandatory disclosure information, because of complexity from the measurement and disclosure (Derong Zhang, 2004). 3. Main problems exist in Compulsory information disclosure 3.1 Low Voluntary Disclosure Rate and low initiative A number of listed companies regard voluntary disclosure of i
18、nformation as an additional burden, rather than a kind of obligation or the right, which should be given to the shareholders. Thus they will be passive to disclose the information, thats to say, they will take less disclosure as less as possible. With time going by, the concept of this understanding
19、 is accepted by people, so that the deviation in the information disclosure makes listed companies in a passive response. The main reason is that the listed company is too worry to tell the public the secret in its management, and thus the disclosure of information creates a psychological fear and e
20、vasive to them. 3.2 Lack of integrity of Voluntary information disclosure Today, Chinese listed companies practice of disclosing information voluntarily is not satisfactory. Many listed companies are reluctant to disclose, and some listed companies only disclose the companys financial information；but the bad news or involved matters with a certain risk, or other seriously matters, the companies are kept silent. Moreover, many listed companies do not disclose fully credibility, hoping the investors rely on the “popular”, then to help them succeed .Chinese investors are
