The Impact Of The American Information Disclosure System On Our Nation's Companies And The Latter's Countermeasures

The string of financial sandals of Enron, WorldCom and so on from 2001 had gravely shaken the investor confidence in American business. The U. S. Congress used heavy penalty in rough times and adopted the heavily disputed SOX act to strengthen the requirement for information disclosure in order to protect the interest of investors. Some sections of the said act, in particular section 404, would lead to the greatly increase of the cost, and many public companies had been going private. In the meantime, numerous foreign firms including China firms had been abandoning the plan to go public in America. The purpose of this article is just to indicate that China firms should correctly recognize and positively face the information disclosure system in America by virtue of introducing simply the information system, finance and accounting system in America as well as the influence SOX imposing on China firms. These China firms should positively search for the countermeasures other than denying the whole system or giving up the listing in America just because of the said act. This article masters wholly the America scholar's attitudes and views to America information disclosure system, especially the said act; furthermore, on the basis of the comparison of Sino-America, this article advanced some views as following: (a)We should firstly affirm the function of the said act to protect the interest of investors, then look for the countermeasures; (b)Our country's protection to investor is insufficient, so SOX can take us suggestions; (c)It still to be testified whether SOX could protect the investor or not in that investors are not all or always reasonable; (d) We can design EAC (Enterprise Accounting Control) subsystem and embed it in some kind of ERP-type comprehensive management system in order to deal with the section 404; and (e) we can appeal to, lobby or negotiate with U. S. in connection to the cooperation of other countries' (including USA) groups to warrant us the exemption from SOX, and adopt the international accounting standards, as well as amend the SOX act partially.