Research On The Effect Of Punishment Of Listed Companies For Illegal Information Disclosure

Information plays an important part in capital markets.The market’s pricing efficiency or the information content of stock prices affects the efficiency of resource allocation and efficient use of capital markets. And accounting information is the most important information in capital markets. True, complete, accurate and fair information disclosure is the basis of the stock market healthy operation. Recently, although the overall quality of China’s listed companies’information disclosure is improving; there is still a big problem of the instability, authenticity, accuracy and completeness of the information. Authenticity and accuracy of information disclosed are questioned by investors. Problems caused by the illegal information disclosure of listed companies in China are still very serious. Such kind of problems have disastrous effect the development of the capital market and resources the optimal allocation.In the context of new accounting standers, reform of the shareholder structure of listed companies and the world financial crisis, this article uses all the listed companies which were punished by regulation institutions for illegal information disclosure from2006to2010as the primary election sample. Fistly,it analyzes the characteristics on the whole situation, industry feature and financial status of illegal information disclosure of listed companies. Study finds that the overall quality of China’s listed companies’ information disclosure is improving, but there is still a big problem of information disclosure. And the quality of information disclosure is relat to the listed companies’ industy, scale and fanicial position. The small size, poor profitablity, high rate of assets and liability of is prone to illegal information disclosure. Secondly it analyses the effect of punishment of listed companies for illegal information disclosure by the methods of statistical analysis and empirical research. Lastly it draws the conclusion and suggestions to help regulation institutions normalize the information disclosure of listed companies.