The Study On Financial Forecast Information Disclosure Of Manufacturing Listed Companies In China

In China, manufacturing listed company is an important part in capital market. According to statistics, since2009to2012, there are612manufacturing companies conducting IPO in Shanghai and Shenzhen securities market, accounting for69.23%of all IPO companies during the period; raised about567.98billion Yuan, accounting for53.34%of all funds raised through IPO. By the end of2012, China’s A-share market has1489manufacturing companies, accounted for60.28%of all companies in the A-share market. Portfolio has no value, its value is derived from the enterprise’s value. The enterprise transfers its future value to participants in the securities market through published financial information, while the financial forecast information is particularly important. On one aspect, compared with historical financial information, financial forecast information disclose the production and operation of the listed company in a future certain period of time which will be more useful and meaningful for investors to make investment decisions and prevent risk, so the investors gradually transformed into focusing historical information and financial forecast information at the same time. On the other aspect, in order to raising funds in the capital market while competing with other companies, Enterprises are willing to disclose optimistic financial forecast information initiatively to show the company has good prospects for development, so more investors will be allured. Since then, both accounting theoretical field and practical field gradually study financial forecast information disclosure. However, the study of financial forecast information in China starts late, practice time are not long, related experience is deficient. In addition, both the environment of capital market and legal institutions are immature, makes the disclosure of financial forecast information exist problems, so many aspects demand further research.First of all, this paper defines the meaning of the financial forecast information, distinguishes it from historical financial information in terms of content and features. Secondly, this paper introduces characteristics of China’s manufacturing listed companies’ financial forecast information disclosure, and on the basis of decision-usefulness theory and asymmetric information theory, theoretically analyzes China’s manufacturing listed companies’financial forecast information disclosure. In this paper, through collecting data of financial forecast information disclosure of China’s manufacturing listed companies in A-share market, found that financial forecast information disclosure exists questions such as insufficient supply, lack of details, inaccuracy, false representation, untimely disclosure and de-normalization, investigated its reason, can be generalized as internal reasons and external reasons. In terms of internal reasons, unreasonable company structure, the limitation of cost of provision and deficiency of profession of financial staff lead manufacturing listed companies lack of initiative to disclose financial forecast information; in terms of external reasons, imperfect disclosure regulations, incomplete accountability system and disclaimer system and inefficient social supervision(including CPA auditing supervision and financial analysts team) further lead to low quality of financial forecast information disclosure of manufacturing listed companies in our country. Because the captial market is mature in America, the system of financial forecast information disclosure system is rather complete, therefore, after analyzing problem of manufacturing listed companies’financial forecast information disclosure in our country, this paper introduces the characteristics of the financial forecast information disclosure system of American public company, including full defines the content of the financial forecast information and prediction period, set up safe harbor rules to protect companies who disclose financial forecast information in goodwill and possess an independent, professional, authoritative financial analysts team. As a reference, this paper puts forward our country should establish adequate disclosure regulations of financial forecast information, establish adequate Safe Harbor Rule, possess an independent, professional, authoritative financial analysts team. Finally, according to problems analyzed earlier in this article, this paper put forward suggestions both in companies’ internal and external governance. In elevating the internal governance of manufacturing listed companies, improve the rationality and effectiveness of the structure of corporate governance, lower equity concentration and improve the system of board of directors, confirm management’s responsibility of preparing financial forecast information, promote financial staff’s professional capacity and stimulate manufacturing listed companies’initiative of disclosing financial forecast information; In elevating the external governance of manufacturing listed companies, propose formulate basic framework of financial forecast information criterion, set up disclaimer of liability regulations, establish sound civil liability clauses of unreal financial forecast information disclosure, perfect social supervision to provide professional support, boost effective requirements from users of financial forecast information.