Abstract
Investment Risk, Information Disclosure, and Market trust—Based on trust game experiment research
Highlights
With the gradual improvement of China's market economic mechanism, the market has become a decisive way of resource allocation
Market economy is a credit economy, and trust is an important cornerstone for giving play to the role of the market (Arrow,1974[1]).Market trust is considered as another important social capital that determines a country's economic growth in addition to material capital and human capital
The stable operation of the contemporary market economy cannot do without a good environment for information dissemination, and the investment market is highly dependent on information
Summary
With the gradual improvement of China's market economic mechanism, the market has become a decisive way of resource allocation. Information asymmetry is an important reason for the lack of market trust.The level of trust in the investment market is directly affected by the transparency of market information.In order to ensure the stability of market trust, realize the function of market capital formation and effective allocation, and play the regulating role of market to the growth of the whole national economy, the key problem to be solved is the problem of market information.That is to say, in order to ensure that the market price accurately and timely reflect the operating conditions and risks of each company, individual companies and the overall market need to improve the information disclosure mechanism.Under this premise, capital holders can combine their own risk appetite, reasonably anticipate the future, and are willing to invest funds to target enterprises.On the contrary, when information asymmetry increases, investors cannot accurately predict the future and their investment intentions decline.in the case of full disclosure of information, enterprises can obtain reasonable capital input, financing costs and operational risks are consistent, and enterprises can make better use of capital advantages and realize effective allocation of resources.Only under the premise of effective disclosure of information, the government and regulatory authorities can find problems in a timely manner, protect the rights and interests of all parties, and effectively prevent the occurrence of market systemic risks. Even if a good alternative variable is selected to study the problem, there are serious endogenous problems among all variables and it is difficult to explain the mutual causal relationship.through the classic trust game experiment and the scientific experimental conditions, this paper studies the causal relationship between the three in order to provide some theoretical support for the market trust problem.Compared with the previous research results, the contribution of this paper is as follows: First, through systematic and scientific trust game experiment, it is verified that the risk of uncertain returns reduces the trust of investors and weakens the capital market capital allocation efficiency, providing scientific proof for the existence of this problem.Secondly, the paper conducts an experimental study on the disclosure of investment-related information, proving that the disclosure of information can improve the trust level of investors and enhance the market activity.this paper finds that the full disclosure of information can effectively reduce the adverse impact of investment risk, and provide a scientific theoretical basis for the solution of this problem.The rest of this paper is arranged as follows: The second part is theoretical analysis and research hypothesis;The third part is the research design;The fourth part results analysis;The fifth part is the main conclusion
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