China's Securities Market Through The Annual Reports Of Some Listed Companies Accounting Information Disclosure System

Accounting information disclosure system, which embodied the principle of transparence, is always regarded as an essential regulatory method on stock market. As American grand judge Louis Blatant said, transparence is the best medicine for modern society and industry evil, sunshine is the best preservative and light is the most effective policeman. All countries' securities regulation institutions passed laws to establish accounting information disclosing system, which laid foundation for securities regulatory system. Chinese securities market is stepping toward a free and international market. But our accounting information disclosure system has drawbacks in both structure and specific operation. These drawbacks were represented as inadequate reliability and pertinence of accounting information of listed companies and lack of transparence of the market, which lead to insider trading,manipulating market and over-speculations. All above behaviors harmed the development of the stock market. In this paper the writer will try to discuss aforementioned problems and offer some solutions.This paper can be divided into three chapters. The first chapter discusses accounting information disclosure system from the point of view of economics and the angel of financial statement analysis. It briefly discusses the significance and reasonableness of accounting information disclosure system, that is, ensuring positive functions of stock market and restricting its negative effects. Next this chapter discusses the current accounting information disclosure system of China by analyzing financial statements of listed companies.The second chapter focuses on annual report of listed companies in order to judge, evaluate and find problems. The core of analysis is the inner relation between entries of the annual report. After comparison of the content and standard of the accounting information disclosure of listed companies, the conclusion is accounting information is inadequate of reliability and pertinence. The third chapter discusses the current accounting information disclosure system of China. Compared with the annual reports standard of USA, the accounting information disclosure system of China need to be improved. Through discussing on illegal behavior and earning management of listed companies, this chapter point out drawbacks of the quality standard of the accounting information disclosure system and offer some solutions.A complete stock market requires listed companies disclose their information timely and accurately. Accounting information is one the most important information sources and annual report is an important part of accounting information. But the information disclosed by annual report is merely a kind of raw information. So it is necessary to analyze annual reports to dig out more useful information, find out problems in our accounting information disclosure system and offer solutions and suggestions. This will protect investors from the loss caused by information asymmetry, improve regulation and transparence, fairness and justness of the market, and finally improve the efficiency and health of the market.