Research On The Failure Of The Information System Of Listed Companies In China And The Relevant Solutions

The information system of listed companies is one of the vital regulatory means to solve the information asymmetry in the securities market and protect the investors.With the comprehensive promotion of the reform of registration system in the area of securities issuance,the information system of listed companies is gaining importance.However,the recent information system of listed companies in China has suffered from a massive failure.The professional reports of the securities service agencies may be inaccurate;the listed companies may be selfish when disclose the information;and,it is hard for unsophisticated investors to understand and use the information disclosed.Based on the whole information system of listed companies in China,this thesis uses the methods of questionnaire,cost-benefit analysis and comparative analysis and finds out that the reasons can be mainly divided into three parts.Concerning the stipulations,the vagueness in language reduce the violation cost;the dispersity of the rules increase the compliance cost;and,it will cost a lot to detail the related stipulations.Concerning the information,the increasing information disclosed has not only unbalanced the costs and benefits of regulation,but also unbalanced the costs and benefits of investors to understand and use the information;and,the large amount of information has also twisted the approaches of investors to access information,increased “agency cost” and moral hazard in the securities market,and caused “the Matthew Effect” among the listed companies.Concerning the regulation and supervision,the listed companies,sponsors,securities service agencies,regulators and investors together structure an “Umbrella Stakeholder System”,which may weaken the regulation and supervision due to conflict of interests and regulatory captures.Comparing the development of the information systems in China and the USA,the following changes in legal mechanism may be necessary: 1.Appropriately increasing the discretion of the judiciary authorities,the regulators and the supervisors while standardizing disclosure forms;2.Emphasizing the independence of sponsors and securities service agencies;3.Improving the regulation and supervision mechanism while optimizing the related civil action system.Meanwhile,from the perspective of “Law + Technology”,the following improvements may be effective: 1.Establishing a new rating system to improve the quality of the information disclosed;2.Establishing a “Preference-based Information System” to remit the “Quantity Problem”;3.Establishing a “Data Sharing Mechanism” among the regulation departments to improve regulation efficiency,promote regulatory cooperation and enhance regulatory constraints.