Case Study On Illegal Information Disclosure Of Savings Environmental Protection Company

With the rapid growth of the GEM market,the public has more and more strict requirements for the information disclosure of listed corporations on the GEM.In 2017,the Shenzhen Stock Exchange revised the assessment methods for information disclosure of listed firms,which further ensuring the fairness and rationality of the assessment results,and making the assessment system more in line with the new situation of capital market.Statistics show that with the rapid development of GEM market,the quality of information disclosure is also facing severe problems.High-quality information disclosure can not only help listed companies to establish a good corporate image,but also help investors make correct decisions,thus maintaining the normal development of the capital market.Therefore,it is necessary to study the illegal acts of information disclosure.This paper chooses the GEM listed company-Savings Environmental Protection Company as the research object.Since this company appeared on the market in 2010,the results of information disclosure quality evaluation have been good,but the results of information disclosure evaluation in 2016 and 2017 are not qualified.In 2016,the board of directors of this firm changed many times,and the company has been punished many times by the regulatory authorities for information disclosure violations since 2017.This article will analyze the consequences and reasons of the illegal information disclosure of listed firms,and puts forward countermeasures to relevant information disclosure.At first,this article introduces the research background,purpose and importance,the content and research method of this paper.By using the method of documentation,it summarizes the relevant literature on information disclosure from four aspects: the influencing factors of the quality of information disclosure of quoted companies,the consequences of information disclosure violations of listed corporations,the reasons for information disclosure violations of quoted companies and the countermeasures for information disclosure violations of listed firms.Secondly,on the basis of introducing the meaning and standard of information disclosure,this paper explains the related concepts of information disclosure violation,and makes theoretical analysis based on principal-agent theory,information asymmetry theory and fraud triangle theory.Then,on the foundation of the introduction of Savings Environmental Protection Compony,this article makes an analysis of the specific illegal information disclosure from four aspects: the company didn't disclose the related parties and their relationship,false record of the time of confirming the investment income,false record of the business income and profit,and not fully disclosed the relevant information of fixed assets.In this section,this paper analyses the results of the company's illegal information disclosure,including damaged corporate image,harmful to shareholders' interests,market performance being implicated,and receiving non-standard audit opinions and administrative penalties by the regulatory authorities.Then,by applying the measures of case study and comparative analysis,this article makes a thorough analysis of the reasons for the illegal disclosure of information.The study finds that the main reasons for the illegal disclosure of interest including the unreasonable ownership structure,ineffective performance of supervisory duties by the board of directors,the lack of effective management of subordinate enterprises,the failure of relevant personnel to maintain good professional ethics,the lack of timely market supervision,and the low punishment for information disclosure violations.Based on the analysis of the above reasons,in order to increase the Savings Environmental Protection Company's quality of information disclosure and relevant information disclosure,the followings should be done: optimizing the ownership structure of the company,giving full play to the supervisory role of the board of directors,and strengthening the effective management of the subordinate enterprises,the employees of the company should also maintain good professional ethics.In addition,this paper suggests that the regulatory authorities should not only strengthen the timeliness of supervision,but also increase the cost of illegal activities and punishment,so as to deter the listed companies who are misguided.