Research On The Impact Of Annual Report Inquiry Letter On The Quality Of Accounting Information Disclosure Of Listed Companies

In the context of promoting regulatory transformation with information disclosure as the center,the market reaction generated by the stock exchange’s annual report inquiry letter and its role in improving the quality of information disclosure in the annual report of listed companies are issues worthy of attention.Based on the theory of self-discipline supervision of stock exchanges and the capital market environment with Chinese characteristics as the background,this paper deeply analyzes the market reaction after the annual report inquiry letter issued by the Shenzhen Stock Exchange to the listed company Huanrui Century United Co.,Ltd.from the perspective of micro-cases,and the influence of the annual report inquiry letter on the information disclosure quality of Huanrui Century annual report is analyzed,which can verify the actual effect of the stock exchange’s annual report inquiry letter to a certain extent.Firstly,a literature review is made on the market reaction of the annual report inquiry letter,the influence of the annual report inquiry letter on the information disclosure of listed companies,the importance and significance of information disclosure,the factors affecting the quality of information disclosure,and the evaluation system of information disclosure quality.After excavating the basic theoretical theories of capital market accounting and finance,such as signal transmission theory,efficient market theory,capital asset pricing model,etc.related to this research,a detailed theoretical study of the annual report inquiry letter and information disclosure supervision was carried out.It includes an overview of the connotation of the framework of the annual report inquiry system,the mechanism of action and the status quo,the follow-up supervision measures for the annual report inquiry letter,the connotation and current situation of the information disclosure of listed companies,and the relationship between the annual report inquiry letter and the quality of information disclosure.Then it discusses the mechanism of the process of annual report inquiry letter affecting the quality of annual report information disclosure,including signal feedback and reputation punishment.Select the data of the inquiry letter and reply letter of the 2018 annual report as a sample,use the event research method,define the receipt of the annual report inquiry letter as an event,calculate the fluctuation of data such as time series stock returns after the event occurs,and examine the market reaction of the annual report inquiry letter.It is believed that the receipt of the annual report inquiry letter has brought a significant negative market reaction to Huanrui Century during the event window period.Combined with the basic requirements of truthfulness,accuracy,completeness,timeliness and fairness of information disclosure and the reliability,prudence,importance,comparability,relevance and understandability of accounting information quality,analyze the content of annual report inquiry letter and reply letter,and the information disclosure of the subsequent annual financial reports,study the effect of the annual report inquiry letter on improving the quality of information disclosure of listed companies.Finally,relevant conclusions are drawn,and opinions and corresponding development suggestions are put forward for the three main bodies of investors,listed companies and stock exchanges.It is believed that the stock exchange annual report inquiry letter can effectively regulate the information disclosure non-compliance of listed companies,increase the attention of listed companies to information disclosure issues,improve the quality of accounting information of listed companies,reduce information asymmetry,and protect investors.It is of great significance to maintain the normal operation order of the securities market and improve the effectiveness of the capital market.This case study is representative to a certain extent,and the research conclusions can be extended to the same type of listed companies.