Research On The Information Content And Effectiveness Of Inqury In China’s Stock Exchange

Since 2013,China has started to reform the information supervision of the market,from the "prior" review of the exchange to the "post" supervision,that is,the information disclosure of listed companies is not released to the public after being reviewed by the regulatory authorities,but directly disclosed by listed companies on the designated website,and the regulatory authorities and investors view the information disclosure of listed companies at the same time,If the regulator finds any problems in the disclosure,it will directly issue an inquiry letter to the company.Inquiry regulation is more like a supplementary mechanism for company information.The exchange pays attention to the hot issues of the company and the deficiencies in disclosure,giving listed companies the opportunity to explain again,and also providing investors with an official channel to understand the company information.The direct purpose of inquiry regulation is to release the information of companies,reduce the information asymmetry between listed companies and investors,and finally achieve the free and healthy development of the market.Therefore,it is of practical significance to study the information content of the inquiry letter and its effect on the market.This paper first combs the relevant literature on the inquiry letter,analyzes the existing literature from the perspective of the factors affecting the company’s receipt of the inquiry letter and the economic consequences of inquiry supervision,and defines the research ideas and directions below.Next,the definition,characteristics and current situation of the inquiry letter make us have a basic understanding of the inquiry supervision system.After that,it analyzes the purpose of the implementation of inquiry Supervision: whether the inquiry letter has information content and plays a role in releasing the company’s information;Whether the information contained in the inquiry letter can promote the market.The research on the information content of the inquiry letter is mainly through qualitative analysis.According to the number of questions asked by the exchange in the inquiry letter,the language expression and the inquiry process,it is concluded that the inquiry letter can release the company’s information,but the company is driven by interests to take improper actions on the reply letter.The effectiveness analysis of inquiry regulation is mainly carried out by empirical research.In this part,we use the data of all a shares in China’s market from2016 to 2020 to establish a hybrid review model for research.The regression results show that whether the company receives the inquiry letter or not has a negative correlation with the synchronization of the stock price;The number of inquiry letters received and the maximum number of questions received can reduce the synchronization of the company’s share price;Institutional investors have a significant impact on the role of inquiry letters.The decreasing effect of inquiry letter on the synchronization of stock price can prove that inquiry supervision mechanism has a positive effect on the market.Finally,the conclusion of this paper is drawn: the inquiry letter has information content,and its regulatory mechanism has an improving effect on the market.On the basis of the conclusion,the paper puts forward some suggestions on inquiry supervision to promote the improvement of top-level design.