The Research On The Market Reaction And Punitive Effect Of Listed Companies' Penalty Notices For Disclosure Violation

After more than 10 years of rapid development, China's securities market has formed a set of relatively complete institutional system, but compared with more developed capital markets of foreign countries in legal construction and regulation of disclosure aspect, there is still a gap. In recent years, SFC and Shanghai Stock Exchange and Shenzhen Stock Exchange release more and more penalty notices about disclosure violations, which largely reflects listed companies'problems in disclosure, and also from the other side reflects the limitation of China's current regulatory effect. The regulation subject of disclosure issues penalty notices for the listed companies'disclosure violations in order to make the companies be punished learn a lesson after being punished, correct wrongdoings and improve the normative of disclosure in the future, at the same time give other companies some warnings. But to what extent the purpose is achieved? How to improve the supervision? Firstly we need to analyze the recent specific conducts of disclosure violation and the punitive effect reflected in punishment announcement's market reaction, and then we need to take measures with target for improvement.This article is based on this purpose, firstly it expounds some disclosure theories in the stock market and the hazards of disclosure violation, then uses statistical analysis method to make a multi-angle analysis about conducts of disclosure violation, which has analyzed a variety of features of recent conducts of disclosure violation and the limitation of disclosure violation punitive effect; then by analyzing the market reaction of penalty notice this article has examined the effect of penalty notice, after quantitatively analyzing the size and direction of abnormal returns of penalty notice before and after penalty notice day, this article finds out the punishment event has information content, before and after the shorter window of penalty notice day, listed company which has been punished appears significantly negative abnormal returns, however, the duration of the negative abnormal returns is short, punitive effect is limited, besides, the article uses the multiple regression analysis method to test the above conclusions; finally, the paper concludes that: the information disclosure violation penalty notice has information content, and it has produced a certain deterrent effect on conducts of disclosure violation, however, the effectiveness of punishment is limited. For the recent conducts of disclosure violation, regulatory agencies need to enhance their regulatory capacity, increase the intensity of punishment, especially that the civil compensation system should be introduced, increase the openness of punishment, eventually, they need to grasp the focus of supervision to ensure the efficient development of supervision, escort for orderly, healthy and efficient socialist market.