The Reasons Of The Listed Company Earnings Forecast Correction

In order to reduce the firm’s information asymmetry between operators andexternal stakeholders, to improve the transparency of the securities market, to timelyrelease the risk of changes in the company’s performance before the regularly report,to help investors to make investment decisions, our country begins to implementsystem of performance forecast from1998, required companies whose performancechange achieve a certain conditions, to forecast their performance before the regularlyreport. The fact that the performance forecast system in our country have a certaininformation content, to some extent, improve the transparency of the securities market.However, there are some companies is not keen to earning forecast system, theirforecasts are not timely and accurate. The phenomenon of changing their forecast stillappear from time to time. In order to provide insights into the cause of the forecastchange company, we taking the xinlong holdings08forecast change as a case,analysis the reasons of xinlong holding forecast correction. Research shows that theimperfect of earnings forecast system, the unreasonable of risk warning system oflisted companies and the major shareholder’s rob motivation, together lead to theearnings forecast correction of Xinlong holding.