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China's listed companies' information disclosure distortion problem causes and countermeasures

Author: LiuYing WeiZuo From: www.yourpaper.net Posted: 2010-05-10 20:23:34 Read:
Papers Key words: listed companies' information disclosure Zero securities regulatory
Abstract: Phi zero system is the cornerstone of modern securities markets, plays a vital role in the healthy development of the securities market. However, our current information Phi zero distortion problem is very serious. From the aspects of the regulatory system defects, and the Institute of Certified Public Accountants, analysis of the reasons for this situation, and try to give the corresponding countermeasures.
So-called information disclosure system, also known as the information disclosure system, the public offering of securities in the stock market, corporate finance, business, investment structure, and composition of the Board, true, accurate, and timely disclose for the market rational judgment securities The investment value of the legal system to safeguard the legitimate rights and interests of the company's shareholders or creditors. Information disclosure system is conducive to the protection of the legitimate interests of investors, to ensure open, fair, the realization of the principles of justice, is an important part of the securities issuance and trading system, is the cornerstone of modern securities markets.
Although China's securities market is still in its early stages of development, in the information disclosure system of norms, however, has been made gratifying achievements, has gradually established a core of accounting information disclosure system of information disclosure, it is for played an important role in promoting healthy operation and development of China's securities market. But the current system of information disclosure of listed companies is still not perfect and standardize disclosure of information distortion problem is very serious, very worries, we should clearly recognize the cause of the problem and take appropriate countermeasures in a timely manner.
An information disclosure of listed companies in China, distortion causes
(A) the securities regulatory mechanism is not perfect, imperfect the colonies laws and regulations of the relevant information of listed companies Phi, the lack of a strong legal norms. Currently, the information disclosure regulation ineffective mainly due to:
1, the regulatory mechanism design defects.
Supervision department of information disclosure of listed companies is the Securities and Futures Commission, the two exchanges and the AICPA. Respective responsibilities and privileges vary.
From the current situation of China's securities regulators, belonging to government regulation. China's securities market is still in the start-up and early stages of development, the entire market is very immature, and the rules and institutions are not sound, in this case, it is certainly very important to strengthen the government's regulation, but totally dependent on the government to regulate the market is unrealistic 's. In fact, China SFC confined to the human and material resources, it is difficult to do effective supervision.
Exchange as their first line of regulatory authorities, not the investigative powers of the listed companies, mainly through reports provided by the listed companies to discover the problem. Having identified the problem, to require listed companies to and persistent explanation to clarify the doubt., But you can not make a substantive judgment suspicious. If you think there are major issues for the disclosure of information of a listed company, can be reflected to the SFC for further investigation and verification by the SFC. This determines the exchange found that the the authenticity problems of capacity is more limited.
Many cases intermediaries, especially accounting firms and certified public accountants can not shirk its responsibility for the authenticity of the information disclosed, so in the AICPA accounting firm should be considered regulatory The weak is responsible. But with the SFC, SFC enjoys the broadest powers of investigation and punishment the CICPA only the investigation and punishment of Certified Public Accountants and the Institute of Certified Public Accountants, and listed companies can not investigate. Not have access to the original data in the AICPA regulatory emphasis the check point of order is difficult to pass inspection firm found the question of the authenticity of information disclosure.
2, supporting laws and regulations are incomplete, inadequate penalties for non-compliance and the protection of the interests of investors.
From the current situation in our country, and regulations promulgated seriously lagging behind in the development of the practice, the legislation seems to be more passive "plugging the hole", the lack of predictability and advance. In the investigation and handling of information disclosure violation cases in practice, mainly in administrative penalties mainly to the increase of the so-called punishment, only reflected prosecuted major criminal responsibility. In property liability, penalties consequences often just the performance of all parties illegal income confiscated by the country, or even just to pay a small amount of a fine instead, but not civil compensation to investors. Too little about civil liability law, these provisions of the Civil Liability and proposed a specific operation program, too principled, resulting in the loss of investor fact receive no compensation. Due to the huge losses of investors do not get the appropriate compensation did not play a deterrent to potential offenders.
(B) the original institutional drawbacks.
China has always stressed that the securities market services to invigorate the large and medium-sized state-owned enterprises. In the state-owned economy as the main economic system, enterprises mainly rely on the government will enter the capital market allocation of resources and administrative powers. This practice has contributed to various regions, the fight for the number of listed companies and the amount of each department, as well as comparisons with each other, and to provide the conditions for packaging low-quality enterprises to backward areas listed. In this case, the issue of audit is essentially a formality, induced by the phenomenon of false packaging.
Most of the listed companies in China by the restructuring of state-owned enterprises or part of the assets from stripping. Accounted for the largest proportion of state-owned shares in China's stock market, property rights are unclear, often resulting in a virtual set of property rights of state-owned shares, the management of the listed companies are often a lack of clear property rights of state-owned shares. Social outstanding shares less and more dispersed shareholding, it is difficult to form an effective property rights constraints. (C) of the CPA level of quality and professional ethics.
In Western countries, listed companies, investors need to believe that the disclosure of the information is true, timely, sufficient, it is necessary to hire an accounting firm to audit its financial position and on which the audit report issued . Certified Public Accountant basis for their existence lies in whether investors believe that their professional judgment. Our accounting firm is established in the planned economy under the conditions of the development of develop risk awareness, high ethical standards, lack of brand awareness, and other ills in the government's long-term shelter, CPAs, although in 1999 the whole industry completed with the decoupling of the restructuring of the government, but supporting the work did not keep up, coupled with the industry-wide shift requires a process, and thus reach the market by the certified public accountant, and not investigating the listed companies. Not have access to the original data in the AICPA regulatory emphasis the check point of order is difficult to pass inspection firm found the question of the authenticity of information disclosure.
Second, the information disclosure of listed companies in China Twist asked distortion magic countermeasures
(A) to strengthen supervision, improve the securities regulatory mechanisms.
1, to improve the ability to discovery violations.
Establish the regulatory framework of government regulation, industry self-regulation and social supervision Trinity, constitute gradually improve by the Securities and Futures Commission, the Stock Exchange, the industry association, the complementary function of the regulatory system, to clear several regulatory body mission and direction. As legislation and enforcement protagonist SFC does not have to be hands-on on the stock market, you should make your own in a relatively detached position, focus on investigation of insider trading and other cases of violation of information disclosure regulations, due deterrent. The Stock Exchange is the most important self-regulatory organization of the securities market, is also a first-line regulators, the core of its information disclosure regulation is to restrain the listed companies to comply with the disclosure rules by the Listing Rules and the Listing Agreement, is responsible for the day-to-day information disclosure. In addition, it is worth to our attention that many developed market countries, such as the United States, the United Kingdom and Australia, have established more stringent investor oversight and complaint system, which is a very worthy of our country learn from the experience.
Improve compliance costs.
Found in listed companies' information disclosure violations must be punished without leniency, severely punish the responsible parties and competent, seriously, to be held criminally responsible. In addition, it is more important to improve the system of civil damages in the Securities Act and ordered the offenders to compensate victims of the investor's loss, can effectively deprive offenders illegally obtained through violations interests, but also to force violators plus on an economic burden. Meanwhile, the civil damages liability system also can effectively mobilize the majority of investors to participate in the monitoring. In mature market countries, especially the United States, so most appalled securities offenders than criminal or administrative penalties, but by small and medium shareholders instituted requirements for civil damages in civil proceedings.
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