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China's Listed Companies Profit Forecast System Analysis And Countermeasures

Posted on:2003-06-27Degree:MasterType:Thesis
Country:ChinaCandidate:H DengFull Text:PDF
GTID:2206360062980430Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Forecast of profits is the most important financial information in the process of decision-making for investors. But as there are many uncertainties in the forecast based on its guiding quality, the authorities of stock-company management then have much manipulating space. The aim of this article is to discuss how to standardize the system of profits forecast by analyzing the forecast operations from 1999 to 2001, and to accelerate the information declaration to match to principle of publicity, equity and justice.The profits forecast and declaration of stock-company have come through two phrases in China by force and by free will. Currently in China, the accomplishment rate of profits forecast is very low. At this condition, we find the system of declaration of financial forecast information has available function on increasing market validity. In contrast with the successful experience of the west, we also find the profits forecast system in China is a bold innovation, which took the form of by force and by free will, emphasizing by force. It will be very useful in cultivating a perfect system of financial information's creation, declaration and audit.Drawing and audit of the forecast needs professional knowledge and ability to grasp the company's prospects, so it is most realistic to declaration by stock-company itself. We also need a legal system on forecast's creation, declaration and audit, which been made by authorities of accountant-rule makers and stock inspectors, to protect investor's legal rights and interests, to define stock firms and agency institutions' legal obligations, and to build healthy order of stock market.In a word, the direction of profits forecast in China will be by using force and free will, emphasizing free will. This will create a status of more steady declarations made by stock firms, and a system of more rationality. Along with appearance of independent financial analyst and diversification of channel to get forecast for investor, profits forecast will have more influence on investor's confidence.
Keywords/Search Tags:Countermeasures
PDF Full Text Request
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