Research On The Extraordinary Gains And Losses Of Listed Companies In China

Sufficient information disclosure system is the important key that ensures the securities business is impartial, equitable and open. The investors get the data of listed companies from the financial reports; the information disclosure is related with the decision-making. But many listed companies change their outstanding achievement according to packaging the financial reports with their items of the extraordinary gains and losses, which made investors lose their confidence and such acts would disserve the well development of the capital market. Therefore, how to well regulate the items is one of the important topics of improving the quality of the information disclosure.This dissertation would roundly study the items of extraordinary gains and losses. Firstly, it would introduce the criterion of items under the different nation accounting system and compare it by the methods of the normative study. Secondly, analyzed the disclosure actuality of the items of Shanghai Stock Exchange listed companies and found the motivation of manipulating the profits with items of few listed companies, chose the appropriate models and used the methods of the empirical study, gained the evidences that the listed companies that had above 20% extraordinary gains in the retained profits of reports is remarkable related with their stock price. It would explain the rational behavior of investors; kept the listed companies manipulative behavior within limits and proposed to the policy-maker. Lastly, in the microcosmic aspect, that found the effectual way that how to be rational definition, calculation and disclosure the items and provided some indicative suggestions. In the microscopically aspect, that the effective information disclosure associated with the society supervise would benefit the information disclosure system of the securities business.