Research On The Effect Of Punishment Of Listed Companies In China For Illegal Information Disclosure

Nowadays, problems caused by the illegal information disclosure of listed companies in China are very serious. Such kind of problems have disastrous effect, which would damage not only the public's right and interest, but also the faith of financial investors, even hamper the development of the capital market. How to prevent and cure the illegal information disclosure of listed companies effectively has become the focus that everybody has paid close attention to.This article uses all the listed companies which were punished by regulation institutions for illegal information disclosure from 2001 to 2005 as the primary election sample. It analyses the effect of punishment of listed companies for illegal information disclosure. The purpose of punishment is to make them draw the lesson and correct their illegal activities, and at the same time, give a warning to other listed companies. This article is trying to help regulation institutions normalize the information disclosure behavior of listed companies.Besides the foreword, the whole article is divided into four chapters.Chapter one firstly introduces the theory achievement about the punishment of listed companies for illegal information disclosure. Secondly, it introduces the change of information disclosure system. Then, the article constructs the frame of theory analysis to establish the foundation for the research of the following chapters.Chapter two analyses the classification of illegal information disclosure and punishment of listed companies. Considering from financial situation, inherent structure and exterior market, the article inspects the character of listed companies which were punished for illegal information disclosure.Chapter three analyses the capital market's response to punishment announcements. Furthermore, the article analyses the reason behind the effect of punishment from the impact, rationality and timeliness of punishment. Chapter four is about the conclusion and suggestions. The article draws a lot of benefit conclusion through analysis. On the basic of the analytical results, three pieces of suggestions are taken into account in the article. The first one is to establish civil compensation system of security, the second one is to enhance responsibility -ascertained of executive, and the last one is to reinforce price-sensitive information disclosure system.The main features and innovations of this article are as follows: Firstly, it makes a lot of descriptive statistics study. Secondly, it inducts a dummy variable in the regression analysis model to distinguish the effect of punishment from different regulation institutions. Finally, it designs nine-degree standards to measure illegal degree of punished-companies.There are two weaknesses in this article. Firstly, the theory of information disclosure is relatively weak. Secondly, it might lack some important variables in the regression analysis model.