(1) is beneficial to value judgment. From the investor's point of view, profit from investment is the main purpose of investment. In order to choose the most favorable investment opportunities from a wide variety of securities, investors must have a full understanding of the credit, financial resources and operating conditions of the issuing company. Only when investors get true, complete and accurate issuer information can they make reasonable investment decisions.
(2) Prevent information abuse. A fair securities market is a market where investors have equal opportunities to obtain information and benefit from investment. The issuance of securities is a process of transferring the company's equity or creditor's rights, and it is also a process of dispersing risks. If there is no information disclosure system, issuers may spread false information, conceal true information, abuse information to manipulate the market, or cheat investors to pass on risks in other ways, so that the securities market cannot show the true value of securities.
(3) Conducive to supervision and management. Information disclosure includes the disclosure of company financial information. Restricting enterprise accounting with enterprise accounting standards is conducive to the standardization of the management of issuing companies. The implementation of the information disclosure system can also expand the social influence of the issuing company and improve its popularity.
(4) Prevent unfair competition. In the evolution of the company system, the separation of ownership and management rights is gradually realized. In order to ensure the reasonable exercise of management rights and safeguard the interests of shareholders and corporate creditors, the company laws of some countries stipulate that directors have the obligations of diligence, loyalty and non-competition. This is because directors may seize the trading opportunity of the company and sacrifice the interests of the company when engaging in non-competition behavior. Or take advantage of his position to cause damage to the company. Therefore, it is one of the important means to protect the rights and interests of the company and shareholders by legally stipulating that directors should undertake the obligation of non-competition and disclose information related to the company.
(5) Improve the efficiency of the securities market. Information disclosure is a key factor to improve the efficiency of the securities market. Securities issuance and securities investment are the processes to realize the allocation of social resources, which are mainly regulated by the market mechanism. The issuance of securities, including the issuance time, varieties and quantity, etc. , mainly depends on the issuer's performance and growth prospects, market demand and investors' investment ability. Securities investment is a selection process. If the company has a good reputation, strong strength, good management, rich profits and great growth potential, the securities it issues will be favored by investors. Therefore, in order to make investors choose investment objects scientifically and realize the rational allocation of resources, a complete information disclosure system must be established.