A Case Study Of Liantronics' Irregular Accounting Information Disclosure

With the in-depth development of economy and society,China's capital market has made great progress,but it still has many shortcomings compared with developed capitalist countries.The development maturity of the legitimacy,accuracy,completeness and timeliness of accounting information disclosure still has a big gap with those western developed capitalist countries,which has a greater impact on the development of China's capital market and it deserves great attention from the society.In the accounting information disclosure system construction area,our country starts relatively late,its development is still immature,and it is still in a stage of continuous improvement.Although the country has promulgated a series of laws and regulations to combat information disclosure irregularities,there are still incomplete systems and inadequacy penalties of that,and the banning effect is not so good,so many listed companies still fail to disclose accounting information or misrepresent accounting information in a timely manner for various reasons,and continue to commit crimes at great risk of irregularities.Research on the disclosure of accounting information irregularities mostly focuses on the empirical analysis,while there is less research onspecific cases.Based on the previous research results,this article uses the case of Liantronics' irregular accounting information disclosure in 2018 for further analysis.By analyzing the impact of information disclosure irregularities,the causes of the irregularities,and finally putting forward corresponding suggestions,it will be conducive to maintaining the vital interests of stakeholders and standardizing the information disclosure market.Liantronics is a listed company dedicated to data-driven integrated marketing services,was listed on the Shenzhen Stock Exchange in October 2011.The company is eager for strategic transformation after going public,and so spree acquire downstream industry field of outdoor advertising enterprise in order to realize the optimization and upgrading of industrial structure,in the process of mergers and acquisitions,Sichuan Fenshi Media company is its largest mergers and acquisitions.Under the pressure of performance,Liantronics made false disclosure of accounting information,and was punished by the CSRC at the end of 2018.At the same time,both the audit institution of the Liantronics—Lixin accounting firm and its accountants failed to fulfill the corresponding practice ethics and standards in the practice process,and were also punished by the CSRC.First of all,this paper makes clear the research background,purpose and significance,then summarizes the research theories of previousscholars and combs the opinions of scholars at home and abroad,then makes a literature review and a brief review.Secondly,this paper reviews and analyzes Liantronics' irregular accounting information disclosure.From four aspects : accuracy,adequacy,timeliness and standardization,this paper analyzes the current situation of information disclosure of Liantronics and reviews the course of this information disclosure irregularities incident and its economic consequences and impact.The irregularities of Liantronics had a huge impact on internal operations and external market.(1)the impact on the company's internal operations activities mainly include: sharp decline in performance,business Difficulties,credit decline,distressed financing,management changes,and the controlling shareholder's controlling position status has been questioned;(2)the impact on the external market mainly includes:investment is damaged,intermediary agency independence is questioned,investors are facing civil lawsuits,company's image is damaged.More importantly,the causes of Liantronics' irregular accounting information disclosure are analyzed from inside and outside of the company.(1)The internal causes: the company's internal governance structure has problems,it is under pressure from the company's internal performance commitment,the responsible person is lacking of ethics,and the company is eager to quickly transform;(2)external causes: external audit firm fail to strictly use audit procedures,relevant laws and regulations are not perfect,thelack of government regulation.Finally,through the above analysis,the paper proposes rational governance suggestions from the internal and external views for the corresponding problems.(1)The internal governance suggestions: improving the corporate governance structure and internal control,formulating reasonable performance targets,and formulating reasonable and stable business strategies;(2)External governance suggestions include: strengthening the independence of audit firm and CPAs,improving relevant laws and regulations and provide policy support and guidance.