Does Voluntary Disclosure Transfer Signals

摘要

Under the special merging markets circumstances in China, for high-value companies, the signal transmission function of voluntary disclosure will be greatly impaired because of the following reasons:(i) the cost of disclosure is very large; (ii) the income of disclosure could be obtained by other means; (iii) the high-disclosure is easily copied and can be impacted by the forecast errors. This paper analyses 4765 samples totally, from 953 companies, which are listed in Shanghai and Shenzhen stock market during 2005-2009. And after using the estimation method of EC2SLS to control endogenous, this paper has found that: voluntary disclosure of listed companies in China does not yet transfer effective signals to outside investors; voluntary disclosure and earnings quality are significantly negative correlated. Further studies shows that in the specific ways of earnings manipulation, listed companies used items under line, discretionary accruals and related transactions which have lower-cost, but not real deal which has been received more attention in western developed country.