An Empirical Study On The Influencing Factors Of The "Patch" Behavior Of Listed Companies In GEM

"Patch" of annual reports refers to various adding and correcting announcements of reports made by companies after the disclosure of the report data,which is usually called ironically as the "psoriasis" of listed enterprises.This has not only attracted the attention from supervising agencies,but also been condemned by the media and investors.Although it is always known that "questions and means to solve them emerge at the same time",for now,no "effective cure" has yet been found to the root of this "patch".The opening of Growth Enterprise Board(GEM)in Shenzhen Stock Exchange in 2009 has enriched the capital market structure of our country,driven and supported the development and expansion of innovative corporations,providing another financing channel for quality enterprises.However,various problems loom without being noticed and the patch problem is even closely related to this phenomenon.Foreign researches on financial statement started earlier and has formed their theoretical foundations.While,domestic surveys concentrate on main board market,with quite little content involved in GEM,as the opening period of GEM is relatively short despite that quite a few researches have been conducted on the annual report patch,a form of financial statement with Chinese characteristics.For one thing,the release of annual report patch,deliberately or not,has weakened the credibility of regular announcements,undermined the legitimate rights and interests of investors and destroyed the effectiveness of the capital market.For another,as the patch problem looms large,there emerges a rising rather than declining trend.Besides,the research on GEM is conducive to supplementing the shortage of exploration of annual report patch,providing reference for enhancing the information disclosure system of our country.Taking enterprises going public in GEM between 2009 and 2014 as the research samples,the thesis first describes the current condition of GEM annual report patch and analyzes its features from multiple perspectives specifically,providing a more direct understanding and recognition of this topic.Information conveyed from the patch is categorized into four types: positive,negative,no-effect and uncertain-type of information.It is discovered that most information from the annual report patch is positive,therefore,it is suspected that the patch is modified deliberately.Secondly,certain basic characteristics of the patch company are analyzed in a detailed manner,on the basis of which,the regression of binary logistic is applied to analyze factors influencing the release of the patch.It is found that the financial status,stock rights structure and span of going public of companies have significant impact on whether the release of the patch will be conducted or not.The higher the debt-to-asset ratio is,the higher the possibility of releasing of the patch is,as the management level of corporations intends to take advantage of this beautified data to raise more capital;the controlling shareholders find their stock-holding capacity positively related to the annual report patch,and a high stock-holding capacity will bring both efficiency and potential risk of being stubborn without taking others' advice;the annual report patch is negatively related to the span of going public.The article also discovers distinctions and similarities between patching companies(a shortened form of those which announce patches of annual reports)and non-patching companies(referring to those which have not released patching announcements),according to which,policies and suggestions are provided,in order to reduce the possibility of releasing the annual report patch.In conclusion,the research on patch of annual reports of listed companies and patching companies is conducive to improving the information disclosure system of the capital market.Compared with the main board market,the growth enterprise one is unique in terms of operating modes,features of company and policies,laws and regulations of our country.The research conclusion is helpful for us to have a more in-depth understanding of companies going public in GEM;to find ways to reduce the release of annual report patch and increase the information disclosure quality of listed companies in GEM;the conclusion is also conducive to the protection of legitimate rights and interests of investors,stability of the capital market and the improvement of capital market effectiveness.