Research On The Distortion Of Information Disclosure On The Interests Of Small And Medium Shareholders

Information disclosure is that listed companies let small and medium shareholder investors and other stakeholders understand the financial status and operating status through regular or interim financial reports and non-financial information,so as to make beneficial decisions for themselves.Therefore,the authenticity of information disclosed by the company is of vital importance to stakeholders.In recent years,China's controlling shareholders have taken advantage of information advantages to occupy company funds through illegal affiliated transactions,illegal guarantees,and other means,emptying listed companies,and disclosing untrue information.This has caused serious interest violations for small and medium shareholders,and has affected the listed companies themselves.The operating conditions of the country have also caused a bad influence.Therefore,it is of great significance to prevent the controlling shareholder from infringing upon the interests of small and medium shareholder investors for the healthy development of the Chinese stock market and the protection of the interests of stockholders.Huaze Cobalt and Nickel,which was punished by the China Securities Regulatory Commission in January 2018,is a typical case of the Wang family with absolute control over hollowing out a listed company.Huaze Cobalt-Nickel's controlling shareholder disclosed false information during the violation of guarantees and nonoperating related party transaction funds.The listed company's operating conditions have deteriorated seriously and it has now been delisted.This article analyzes and sorts out the distortions of Huaze Cobalt and Nickel's information disclosure during this period,summarizes the violation of the rights and economics of small and medium shareholders,and then proposes a textual analysis of non-financial information to judge the credibility of information disclosure.This article analyzes the reasons for the infringement of the interests of small and medium-sized shareholders from the aspects of the concentration of listed companies' equity,the company's internal control system,the verification of listed companies by the audit agency,and the supervision of the listed companies by the Securities Regulatory Commission.The audit institution did not maintain professional suspicion and was inadequate in performing its duties;the CSRC maintained supervision,but due to the small punishment,it did not play a controlling role.Finally,for these reasons,some specific suggestions and countermeasures were put forward to strengthen the internal control system and strictly implement it;auditors should maintain professional suspicion and strict review;improve relevant laws and regulations,and increase the cost of violations,and severely punish violations;strengthen against Africa Disclosure of financial information.