On The Supervision Of Irregularity Risks Of Listed Companies And The Protection Of Non-sophisticated Investors

As we all know, there are many risks inherent in stock market, and the theoriesfor analysis, avoidance and supervision of these risks are various. From the point viewof Economic Law, conventional analysis of risks is limited on purpose, which comesfrom the perspective of government supervision, ignores investors especially ordinaryinvestors and results in passive supervision from the relevant departments, and theinterests of investors are not ensured. Moreover, the discussion of violations focusedon false statements, insider trading, market manipulation and so on, and thisclassification is based on the characteristics of behaviors, lacks the classification ofcertain behavioral agents. Therefore previous analysis focused on securitiescompanies, investment funds, the controlling shareholder and other market players,and ignored the analysis of listed companies in this market which are the largest andmost influential market subjects. In this study, we first analyzed and classified therisks in stock market, and pointed out the shortcomings of the traditional view. Thenon the basis of structural analysis of ordinary investors, we came to the conclusionthat the violations of listed companies had become the main risk influencing theinterests of ordinary investors, which were verified by real cases. Finally, wediscussed the lack of supervision from the relevant government departments and effective ways for the improvement of laws.In addition to introduction, this thesis is divided into four parts. In the first part,the investment risks in stock market were analyzed and classified. Wediscussed the shortcoming of the traditional view, then described and elaboratedthe violations of listed companies, and came to the conclusion that the violations oflisted companies had become the main risk influencing the interests of ordinaryinvestors based on the structural analysis of ordinary investors. In the second part, weselected some real cases in the securities market which represent violations of thelisted companies in some sensitive areas. Empirical analysis of these cases revealedthat violations of the listed companies have become an investment risk and have agreat adverse impact on investors especially ordinary investors, which validated ourconclusion. In the third and the forth part, we pointed out the necessity and deficiencyin the regulation of securities market by relevant government departments, and putforward effective ways for the improvement of laws.