A Case Study On Compulsory Delisting Of Listed Enterprises-a Case Study Of Changsheng Biology

In 2018,China accelerated the pace of perfecting the delisting system of listed companies,and the delisting problem of listed companies attracted more and more attention.With the continuous reform of the delisting system,China's securities market formally entered the normal track of delisting.In order to avoid being forced to withdraw from the market fundamentally,listed companies need to actively fulfill their social responsibility while pursuing maximum profits,improve the ethical decision-making ability of CFO.This paper chooses Changsheng Biology as a case study.It is the first state-owned enterprise to be forced to withdraw from the market due to fraudulent issuance and illegal disclosure of major information after the delisting system was improved in 2018.The reasons for its delisting are warning to the listed companies in the same industry and even to the capital market.In this paper,the method of event study is used to analyze the impact of bad news announcement on the earnings of enterprises during the event period and on their continuing operation.Secondly,it points out the problems of social responsibility and supervision of Changsheng Biology before it withdraws from the market.Then,from the perspective of corporate social responsibility,based on governance theory,stakeholder theory,regulatory theory,the reasons for the forced delisting of long-lived organisms are analyzed.Finally,it gives enlightenment from government level,enterprise level and stakeholder level.Fifteen days after the outbreak of the "vaccine incident",the cumulative excess rate of return dropped to-73.70%.Capital market has negative opinions on the value of enterprises.The absence of corporate social responsibility and the failure of CFO ethical decision-making will lead to unsustainable operation of enterprises.Analyzing the annual report of Changsheng Biology before its delisting,we find that there are some financial problems in the enterprise,such as paying more attention to sales than research and development,putting forward higher bad debts.In addition,the information disclosure of the enterprise violates the rules and is punished by the SFC by 9.1 billion yuan,which leads to the forced delisting of the enterprise after retrospective analysis.Actively fulfilling social responsibility of listed companies helps to improve the value of enterprises,which in turn will affect their sustainable development,and then be forced to withdraw from the market.Therefore,if listed companies want to survive in the securities market for a long time,they must fulfill their corporate social responsibility and improve the ethical decision-making ability of CFO.