Research On Legislation Mechanism Of Forecast Information Disclosure

Forward-looking information is the forecast or prediction about the trends or performance or important situations of listed companies in the future. In modern securities market forward-looking information is part of securities information which is disclosed to public by listed companies. It provides investors with a special perspective to view a listed company from the managers’ standpoint and helps them valuate the company and then make a decision to buy or to sell any stock. Because forward-looking information is a kind of forecast which just tells the probability of future other than any specific description of fact, uncertainty is its source trait for which it may either come true or not. Although forward-looking information is important for investors to make investing decision by knowing a listed company more clearly, the uncertainty adds risks to the securities market. It would be unfair to the subject of security market if apply the regulation of the traditional historical information. There is legislative shortcoming about forward-looking information in our country. There is no related regulations in Securities Law, Company Law and the disclosure act of China Securities Regulatory. The core content of this essay is that how to construct China’s forward-looking information legal system base on the reality of Chinese.In theory, forward-looking information has the function to improve the effective of the market, remedy the asymmetrical of information distribution, reduce the cost of investors, strength the market competition,make information get positive cycle from companies to investors. The theory of effective market, information distribution,competition, the cost of trade and signal disclosure the justice value and the efficiency value of the forward-looking information.It is the inexorable trend to establish the regulation of forward-looking information.Based on the research of involved institution of USA, we know that the core content of forward-looking information regulation is about the Safe Harbor rule and Meaningful Cautionary Statements and the objective is improve the positivity of disclosure subject. Through the research of the involved regulation of the United States, I get the idea as follows : firstly the objective of regulation is to improve the positivity of disclosure,secondly the specific legislative suggestion can be divided in four part: formulating guide norm, special rules of false statement,liability fixation and safe harbor.In the fourth part of my paper,I discuss the above ideas in detail and put forward the legislative suggestion.