What Are the Different Types of Disclosure Rules?
Information disclosure rules refer to the relevant parties in the securities market, in a series of processes such as securities issuance, listing, and trading, in accordance with the relevant regulations of the self-regulatory institutions such as laws, regulations, securities regulatory authority regulations, and securities trading venues. A set of codes of conduct and activities for investors and the public to disclose securities-related information.
Information disclosure rules
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- Chinese name
- Information disclosure rules
- Object
- Investors and the public
- Application
- Securities issuance and listing
- Attributes
- rule
- Information disclosure rules refer to the relevant parties in the securities market, in a series of processes such as securities issuance, listing, and trading, in accordance with the relevant regulations of the self-regulatory institutions such as laws, regulations, securities regulatory authority regulations, and securities trading venues. A set of codes of conduct and activities for investors and the public to disclose securities-related information.
- Integration of Securities Market Information Disclosure Rules
- Choice of Securities Information Disclosure Rules
- In the context of the internationalization of the securities market, all participants in the market can benefit from it. The issuer as a fundraiser can obtain financing from abroad, which helps to improve its credibility and increase the value of its shares. The reduction of market risk will also reduce the cost of funds; for investors, it can obtain international Within the scope of investment diversification and opportunities to increase risk returns; for countries that accept foreign listed companies, it can increase employment opportunities and obtain considerable returns due to the provision of various financial services. However, we cannot ignore the key factor of information disclosure. According to research by Saudagaran et al., The cost of information disclosure is the most important aspect that transnational securities issuers consider when choosing their listing venue, and only when the benefits of their transnational issuance and listing outweigh the disclosure costs they must comply with Behaviour becomes feasible. Investors also need an effective disclosure system to obtain the information necessary to accurately price multinational securities at low cost. Effective information disclosure can also prevent management of opportunistic behavior, reduce fraud and market behavior, and better protect investor interests. Therefore, the development of the international securities market depends to a large extent on the choice of a country's information disclosure system.
- According to research by Hagerty & Fishman and Verrecchia et al., In the case of disclosure costs, securities issuers or listed companies will not voluntarily disclose their relevant information. In order to ensure accurate and timely disclosure of information, regulatory authorities must make mandatory disclosures. Regulation. As a result, regulatory authorities often face a dilemma: on the one hand, in order to protect a large number of individual investors, countries often adopt relatively strict disclosure requirements that are suitable for their own circumstances.On the other hand, such increased disclosure costs often It will also prompt issuers that value the cost of information disclosure to switch to other markets, and then take away more investors, which is contrary to the goal of a country's financial market development. Therefore, the choice of information disclosure system has become an important issue that must be addressed in the development of the securities market. Regarding information disclosure in the international securities market, one is the "regulatory competition" rules adopted by most countries. The regulatory disclosure requirements of various countries are mainly formulated in accordance with the goals of national economic development. The disclosure rules of other countries are not very relevant; the other is the "harmonization" rule of information disclosure. Different countries share the same disclosure standards. This method has been adopted by EU countries and some bilateral countries. (Such as the MIDS between the United States and Canada). In order to find the best information disclosure rules, it is necessary to analyze the theoretical basis and advantages and disadvantages of these two rules.