Capital Market Disclosure Regimes: Advancing Accountability for Chinese TNCs

This chapter examines how both traditional and emerging disclosure obligations for listed firms serve as an important source of TNC accountability to investors and other stakeholders. It then presents a case study of the adoption of mandatory and voluntary reporting requirements by stock exchanges and securities regulators in mainland China. The potential role of capital market disclosure regimes in driving accountability for Chinese TNCs is particularly interesting because of the growing influence of Chinese TNCs in the global economy. China is also a leader among global capital markets, and its influence is likely to deepen with new reforms that are expanding access for foreign investors. China’s experience highlights the advantages of disclosure-based regimes as a source of accountability for TNCs even in institutional con- texts that limit the effectiveness of external monitoring and traditional regulatory tools.