Open AccessVoluntary Disclosure in a Changing Regulatory Environment–Evidence from Chinese Stock Market
Author(s) -
Wen Qu,
Barry Cooper,
Victoria Wise,
Philomena Leung
Publication year - 2012
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v4n4p30
Subject(s) - voluntary disclosure , business , stock market , commission , legitimacy , stock exchange , turnover , security market , accounting , stock (firearms) , finance , economics , law , mechanical engineering , paleontology , management , horse , politics , political science , biology , engineering
This paper investigates the voluntary disclosure made by 297 Chinese listed firms in their 1995-2006 annual reports. It aims to determine how firms in the Chinese stock market have responded to the coercive pressure exerted upon them by the market regulatory body, the Chinese Security Regulatory Commission (CSRC) in terms of providing transparent information to the stock market. The findings show that over the study period, listed firms have gradually increased their voluntary disclosure. This paper also explores the main characteristics of voluntary disclosure made by listed firms in the Chinese stock market. It is concluded that voluntary disclosure has been adopted by firms to achieve institutional legitimacy in the stock market.