Research On The Motivation And Consequence Non-guaranteed Behavior Of Company Financial Report

Financial report is the most direct way for internal and external stakeholders to understand the financial situation,operating results and cash flow of an enterprise.Information disclosure is the act of disclosing the financial report of an enterprise to the outside world.The directors,supervisors and senior managers of listed companies play an important role in information disclosure.They should perform their duty of diligence to ensure that the information disclosed is true,accurate and complete.High quality information disclosure is conducive to maintaining the public interest,promoting the rational allocation of resources,and promoting the healthy development of the securities market.However,the "financial report is not guaranteed" behavior of Boyuan Investment in the A-share market in 2015 led to the"new normal" of the securities market.Since then,the behavior of directors,supervisors and senior executives of listed companies that "financial reports are not guaranteed" has emerged in an endless stream,which has triggered a strong response in the capital market.Therefore,it is necessary to discuss the causes,consequences and countermeasures of this phenomenon.Specifically,the behavior of financial statement non assurance refers to the behavior that the information disclosure obligor declares that the report disclosed by the enterprise to the outside cannot guarantee its true and accurate content.On the basis of reviewing the documents on information disclosure obligors,information disclosure quality,responsibilities of information disclosure obligors,and financial reports that are not guaranteed,this paper makes statistics on the number of annual reports in the capital market from 2014 to 2019 in which the directors,supervisors,and senior managers of the listed company have "financial reports are not guaranteed".It is found that this phenomenon is becoming more and more serious.The directors,supervisors,and senior managers of the listed company should ensure that the information disclosed by the listed company is true,accurate,and complete,Exchanges and regulators should be more strict in their supervision.This paper,taking Zhaoxin New Energy as a case study,systematically discusses the causes of Dong Jiangao’s "financial report is not guaranteed" behavior,comprehensively analyzes the consequences of Dong Jiangao’s "financial report is not guaranteed" behavior,and puts forward suggestions to prevent this phenomenon.Through the analysis of the "financial report is not guaranteed" behavior of Zhaoxin Energy Company,the research results show that the causes of the"financial report is not guaranteed" phenomenon mainly come from the major defects in the internal control of the enterprise,the excessive concentration of equity,and the excessive financial risk of the enterprise,resulting in the directors,supervisors and senior managers failing to perform their duties of diligence in their behavior,failing to play a central role in supervision,and failing to play a central role in information disclosure,In order to avoid liability and reduce violation costs.From the perspective of consequences,the behavior of "uncertain financial statements" will lead to increased concern of the exchange and regulators,damage to the company’s reputation and decline in the company’s share price,which has brought great negative wealth effects to shareholders,and the market is very pessimistic about its future.Finally,from the perspective of the company’s internal control,this paper proposes to introduce institutional investors,set up an independent risk control department,establish a discussion mechanism on key issues and establish an internal accountability system,and give suggestions to reduce the occurrence of financial reporting insecurity.The innovation of this paper is to summarize the causes and consequences of the phenomenon of "uncertain financial statements" of trillion new energy,study the event in a qualitative and quantitative way,and summarize the specific information and reasons for the uncertain behavior in the 2019 annual report of trillion new energy by combining descriptive statistics with case analysis,crawling technology and manual search,I hope it can provide reference for the follow-up study of this problem.