Research On The Causes And Consequences Of St Rongtai’s Accounting Information Disclosure Violations

At present,against the backdrop of the epidemic in the 21 st century,China’s economy remains a global leader and has shifted from a stage of high-speed growth to a stage of high-quality development.Under the guidance of the new development concept,high-quality economic development has taken a new step.China’s capital market is also making continuous progress,among which listed companies are the key driving force to promote high-quality economic development and the cornerstone of the capital market.Only by improving the quality of listed companies can we ensure that the capital market environment moves forward steadily,while the information disclosure system is an important starting point to improve and consolidate the quality of listed companies.Cracking down on information disclosure violations of listed companies requires sustained and lasting efforts.With the deepening of the reform of registration system,listed companies should constantly improve the quality and level of information disclosure.Disclosure of accounting information is a "people’s livelihood" process,to build a bridge between the listed company and its stakeholders,so that the listed company through this bridge to transmit information to the outside,the stakeholders through this bridge to approach the listed company.The results of accounting information disclosure directly affect the decision-making behavior of investors.Therefore,in order to protect the interests of investors and maintain the credibility of the capital market,it is imperative to further standardize accounting information disclosure.Our country strictly controls violations of information disclosure.On March 1,2020,the revised Securities Law of the People’s Republic of China（hereinafter referred to as the New Securities Law）officially came into effect,drawing up more standardized and strict standards for accounting information disclosure,among which a new chapter on "Information Disclosure" was set up in Chapter 5.The importance of information disclosure is further highlighted by further strengthening information disclosure requirements in the form of independent chapters.On March 19,2021,after careful revision,China Securities Regulatory Commission（CSRC）issued the Management Measures for Information Disclosure of Listed Companies,which will officially come into effect on May 1,2021,further improving the basic requirements for information disclosure.These measures have a positive effect on standardizing the information disclosure behavior of capital market and protecting the legitimate rights and interests of investors.ST Rongtai accounting information disclosure violation case is one of the first cases to be punished under the new Securities Law,and the punishment for this case is the first penalty of ten million level made by the CSRC under the new Securities Law.This case is different from the old version of the Securities Law in many aspects,such as the amount and the scope of the penalty,which has become a prominent representative event in the regulatory market,triggering extensive discussion from all walks of life.Therefore,since the implementation of the new Securities Law,the first listed company that has been fined ten million yuan for serious violations of accounting information disclosure has been studied in this study.This case has great practical significance because of its first case,high punishment,shock,high attention and strong public opinion power.On the basis of combing the current information disclosure literature and theories,this study studies the case of ST Rongtai accounting information violation disclosure.Through the overall review of the case of violation of accounting information disclosure,the GONE theory is used to study this cause,the event study method,trend analysis method,comparative analysis method is used to analyze its economic consequences,and discuss the impact on the company,investors and the market.Finally,it is concluded that ST Rongtai accounting information disclosure violations have at least four causes,First,the real controller Yang is eager to revive ST Rongtai and the executives are greedily driven by interests;Second,weak internal supervision and unreasonable ownership structure of the company provide opportunities for violations;Thirdly,the company needs to reduce the risk of equity pledge and maintain its position in the industry;Fourth,the possibility of violation disclosure being found by external audit is low and the cost of violation in the old Securities Law is too low.In addition,exploring the consequences of the event found that the new "Securities Law" brought some "new" consequences to the company,resulting in accumulative fines of more than ten million,unstable senior management,affecting the company’s reputation and financing;Event study method,financial trend analysis method and comparative analysis method all analyzed that the information disclosure violation event caused serious economic consequences to ST Rongtai in terms of stock price and short-to medium-term economic situation.At the same time,the event affected the equity pledge of major shareholders,the economic loss of minority shareholders,and the investment confidence was impacted;For the market,it disturbs the stock market.Finally,in view of the above causes,This study proposes countermeasures and puts forward suggestions in four aspects: strengthening the personal behavior norms of board of directors,supervisory board and senior management,and improving the corporate culture from multiple perspectives;Strengthen internal control and rationalization of ownership structure;To prevent the risk of equity pledge of major shareholders and explore a sound development strategy;We will ensure that external auditors perform their duties and strictly enforce the new Securities Law and Criminal Law.