Study On Influencing Factors For Patch Announcements Of Listed Companies

In China’s securities market, there is a special phenomenon, patch announcement, which isexisting in the information disclosure processes of listed companies. It refers to, correctionsor additions have been made to the reports of listed companies in the form of an interimannouncement, which announced officially.As a part of accounting information quality system, it reflects the kind of informationasymmetry essentially. In this paper, I will select internal and external motivations as thefocus of the study. I hope through the analysis, can explore the mechanism of patchannouncement, and then raise some reasonable policy recommendations, to reduce theprobability of patch announcement.This paper analyzes the characteristics of the sample companies.On this basis, using acombination of methods of empirical analysis and normative research, elaborating patchbulletin produced by the internal and external motivation, and evaluating the overall status ofthe patch announcement system from multiple perspectives.This article view that, it should distinguish between good patch and bad patch; Patchannouncement is, and should be a part of the annual report of the system;Studies have shownthat, an external legal environment, external audit, corporate governance structure andcorporate financial position are influential to occurrence of patch announcement. To reducethe incidence of patch announcement, external supervision should be strengthened, focusingon corporate governance from both inside and outside...