Research On Voluntary Disclosure Behavior And Consequences About CGX Company

Information is the key element of the capital market,with the rapid development of the capital market of our country,the information disclosure is more and more important,the capital market is the market of information.Listed companies in the development of the initiative would like to disclose such as operating performance,R&D investment,stable market products,future development strategies and other information,sends signals to potential investors,potential investors will make investment decisions based on the information disclosed by the company.Creditors are also information users,through the disclosure of listed companies,creditors can determine whether the risk of business to determine whether to continue to maintain the relationship between debt and debt.Regulators as the securities market supervisors,always concerned about the disclosure of information listed by each listed company,will not allow any company to disclose.Voluntary information disclosure should not only be true and timely,so strengthen the validity of capital market,to protect the interests of all investors.At the same time,it is an inevitable trend to realize the stock issuance registration system,the registration system is the product of market improvement.At present,China's stock is issued approval system,but has been in the new three board trial registration system,it is the registration system before the full implementation of the preparation,how to transition from the approval system to the registration is a question worth considering.With the gradual implementation of the registration system,the enterprises to be listed on the information disclosure efforts will be more and more,requiring enterprises to disclose all the information at any time.From the perspective of investors and capital markets,voluntary information disclosure is a bridge between listed companies and information users,the core of the capital market can be effectively run.However,due to the current stage of China's capital market has not yet developed,voluntary information disclosure in the initial stage,many companies lack a sense of disclosure,In the absence of guidance,the disclosure of information less,not standardized,not timely.This will not only restrict the development of China's capital market,induce investors to make the wrong decisions in investment,but also lose the enthusiasm of some investors.Biopharmaceutical industry is China's national economy,plays a decisive and special industry,covering a number of disciplines of advanced technology and high-tech means of production.CGX company is a state-owned holding company,which is based on the research and development,production and sales of bio pharmaceuticals,supplemented by real estate development,the company breakthrough innovation,forge ahead,focusing on R&D of new products,R&D investment accounted for 7%-10%of pharmaceutical revenues.In this paper,CGX,a leading enterprise in the biopharmaceutical industry,is taken as an example to analysis of the information disclosure and consequences of long-acting growth hormone certification events and puts forward some suggestions on the problems in the disclosure.Long acting growth hormone is a subsidiary of CGX,the world's first,is a new treatment of short stature,the market prospects.Before entering the market,the products need to be certified by the State Administration of food and drug administration.This information is an advantage for the company information.Therefore,the event information will be recognized by investors,so the stock price volatility.This paper reviews the research status at home and abroad,analysis of the reasons for voluntary disclosure by the mechanism analysis,voluntary disclosure is a means of signal transmission,which can reduce the adverse selection and moral hazard caused by asymmetric information,and reduce the damage to the interests of investors.After that,we use representative indicators to evaluate the information disclosure of CGX company,it is not difficult to find that there is less information in the disclosure of substantive content,the form is not standardized,it reflects the current situation of voluntary disclosure of information quality is low.Then,the author analyzes the motivation of information disclosure in the case of CGX company's long term growth hormone and the information disclosure in the indications of increasing product.CGX is mainly to attract investors and display a good image,then use the event study method to analyze the impact of the information disclosure on the stock price.The extent of voluntary disclosure affects stock price volatility,which is not related to the current normal returns.As can be seen,CGX appears in the information disclosure of the issue:the company not timely disclosure,supervision departments lack of professional guidance,investors are not professional.Information disclosure is not sufficient,not timely seriously restricting the development of the capital market.Finally,suggestions are put forward to improve the information disclosure from the perspective of the company,regulators and investors,mainly to enhance their awareness of the company's disclosure,regulatory authorities should do a good job of guidance and supervision,investors should improve the identification of information.Only in this way can we improve the level of voluntary information disclosure.At present,the board has initially formed exchange board,small board,gem,three new board and other multi-level capital market structure.With the development and improvement of the multi-level capital market,the listed companies should not only strengthen the awareness of information disclosure,but also should strengthen the guidance and supervision of voluntary information disclosure.In order to improve the current information disclosure environment,voluntary information disclosure needs to be run under a certain standard system.Only in this way can we guarantee the quality of information disclosure and ensure the reasonable and effective operation of capital market.