Analysis Of The Effect Of Delisting System

The delisting system is a basic system in the capital market,and is of great significance to guaranteeing the quality of listed companies.Especially when the current listing system is gradually relaxed,if the delisting system can not play a role,a large number of inferior companies will exist in the market,which will not be conducive to the long-term development of the capital market.At present,the delisting rate in China’s capital market is extremely low,listed companies repeatedly wear*ST.Focusing on this,this article analyzes the validity of delisting system comprehensively from data statistics,empirical research and case analysis.In this paper,we take the company which is warning of the delisting risk as a sample to conduct the research and analysis.The conclusions are as follows:(1)The delisting system of our country has a limited role of the inferior,with an average delisting rate of only 0.3%,well below the level of 5%-10%of foreign countries;(2)the performance incentive of the delisting system is limited.Companies warned of the delisting risk improve performance shortly through the earnings management.In this paper,an empirical analysis of the company from 2010 to 2016 is conducted to prove that there are significant negative earnings management behavior in the past two years.However,there was a significant positive earnings management behavior in the year prior to the removal of cap.(3)The delisting system has a limited protection for investors.*ST companies before and after the presence of a significant excess return rate volatility was significantly higher than the HS300 Index.Further,this article detailed analysis*ST ChangJiu,which was warned three times since 2010.The fundamentals of the company’s main business without any improvement,relying on government subsidies and non-current assets to improve non-recurring gains and losses.This article puts forward relevant suggestions from many aspects such as perfecting delisting index system,establishing and improving supporting system and investor education.