The Research On Unalwful Practice Of SME Listed Companies

Along with the unceasing development of Chinese modernization market economy and stock market, listed Companies on SME Board of Shenzhen Stock Exchange had already developed to 483 cuts off on September 30,2010, since 8 platelet to be listed officially since May 27,2004. The establishment of small and medium-sized enterprise(SME) board, had strong competition in attracting funds and optimizing listed market resources, as well as strengthened the polytropism of Chinese capital market and the market infrastructure. However, there are also obvious institutional shortcomings in SME Board Listed Companies, such as the holding party has much more share than the second biggest shareholder; family corporations are very common; and there is no clear partition between the corporation governance group and management group. From 2004 to 2010 September 30, Shenzhen Stock Exchange had issued punishment announcement 74 times in view of unlawful practices of SME Board Listed Companies. Just in the month of September,2010, Shenzhen Stock Exchange had issued merely 5 punishment written notices one after another.On the base of summarizing the domestic and foreign unlawful practises, the article selected 54 SME Board Listed Companies published by Securities Supervisory Committee(SFC) as study samples from May,2004 to September 30,2010. Firstly, give descriptive statistical analysis and theory analysis separately from violation times, types, professions and so on; Then briefly introduced Benford's Law and verify whether the major finance data of Chinese SME Board Listed Companies accords with the law, such as finance data from balance sheet, profit statement and some main financial indicators. The goal is to verify the authenticity of related finance date and help stakeholders (such like investors, creditors, Government departments, exterior auditors and so on) preliminary discern the false from the genuine of financial informations provided byenterprise management level'. The article has five chapters. Chapter 1 is introduction, which has mainly outlined backgrounds, goal, significance, methods, structure and contributions of the research as an essential preparation for later various chapters; Chapter 2 summarizes the domestic and foreign related literatures in the view of corporate governance, reputation mechanism, earning management and punishment effects; Chapter 3 gives descriptive statistical analysis and theory analysis for SME Board Listed Companies; Chapter 4 gives empirical analysis for SME Board Listed Companies, chose 49 illegal samples and 49 lawful samples to verify whether the major finance data of Chinese SME Board Listed Companies accords with Benford's Law and identify their authenticity; Chapter 5 conclude the studies of this article.