Research On The Regulatory Effect Of Inquiry Letter

Due to the rapid development of China’s securities market,the traditional information disclosure system has been unable to keep up with the changes in the market environment,making the information asymmetry of listed companies and investors more and more prominent.The implementation of the information disclosure through-train reform in 2013 has shifted the supervision of the exchange on listed companies from pre-audit to post-supervision.The latter shift of the focus of supervision is intended to strengthen the first-line regulatory responsibilities of the exchange,at the same time make listed companies more responsible for their own information disclosure.Regulating the information disclosure behavior of listed companies is the purpose of the exchange’s implementation of inquiry letter supervision.Under this background,this paper analyzes the regulatory effect of inquiry,studies and discusses the implementation effect of inquiry supervision in actual enterprises,and helps investors and creditors to deeply interpret the intrinsic value of inquiry of listed companies,and provides regulatory ideas for regulators,which has important practical significance.This paper takes the inquiry letters sent by Shenzhen Stock Exchange to Kan as the research object,and conducts a case study from the perspectives of merger and reorganization inquiry letters and annual report inquiry letters.Firstly,it combs the merger and reorganization process of Kan twice questioned,and comprehensively introduces the content of merger and reorganization inquiry letters,annual report inquiry letters and the reply of Kan.Secondly,in view of the merger and reorganization of the inquiry,the reasons why the two mergers and acquisitions were inquired were analyzed in detail,the modification of the transaction plan after the inquiries were compared,and the market reactions before and after the inquiries were analyzed using the event research method.In view of the annual report inquiry letter,the accrual-based profit separation method is used to compare the change of earnings management degree of Kan after receiving the inquiry letter by using the modified Jones model,and the information disclosure behavior of Kan is analyzed to analyze the regulatory effect of the annual report inquiry letter.Finally,it is concluded that the inquiry can promote the revision of the merger and acquisition scheme of Kan,bring negative market reaction,transmit deterrence signals,cause reputation constraints to form regulatory pressure,and can reduce the degree of earnings management of Kan,standardize its information disclosure behavior,with obvious regulatory effect.The research conclusion of this paper fully affirms the regulatory effect of the inquiry letter,and provides some enlightenment and reference for regulators,listed companies and investors: Exchange as a regulatory authority,should regulate the behavior of mergers and acquisitions of listed companies,while strengthening information disclosure of listed companies,and increase the intensity of mergers and acquisitions inquiry;As the main body of information disclosure,listed companies actively cooperate with the supervision of exchange income to improve the quality of information disclosure.Stockholder should take a positive attitude to pay attention to and interpret the inquiry information to help regulators better achieve the monitoring effect of inquiry.