Research On The Questions Of Disclosure Of Earnings Forecast Information Of Chinese Listed Companies

With the continuous development of the capital market, the earnings forecast information is becoming more and more important in the future trend of the development of the financial report, it will also play a more important role when investors make their investment decisions. The disclosure of the earnings forecast information is good for dispelling the problems of the information asymmetry between the administrative authority of the company and external information users, dispelling inside trade that using the advantage of the information asymmetry, maintaining the justice of the security market. The disclosure of the earnings forecast information contributes to improving the efficiency of the security market by reducing the resources consumed by generating infonnation, disseminating information, analyzing information and interpreting information. And it can also reduce the private cost that investors searched this kind of information. In1993our government began to require the company should disclose earnings forecast information in its prospectus. Before march2001, our country implemented the system that the earnings forecast information of listed company revealed by force, but the result found the dependability of earnings forecast revealed by force was low, even some listed companies knowingly provided false or misleading information of earnings forecast that brought investors a great deal of distress. In view of this, March2001, securities supervision department switched it to the mode that earnings forecast revealed by voluntary, and at a later time gradually released some normative documents on profit forecast. But China’s stock market started later, capital market is still in the stage of weak effective, and our country also did not establish a perfect earnings forecast system of information disclosure. The disclosure of the earnings forecast information suffers from a lot of problems such as low quality, inadequate disclosure, lack of motivations. Disclosure of the earnings forecast information is studied in this paper in order to make it fully play its positive role in China’s securities market, and ultimately to achieve the purpose of promoting the fairness and efficiency of securities market, optimizing resources collocation and protecting investors.This paper starts from the present situation, combines with existing problems, considers the reasons for these problems of the earnings forecast information are as follows:first, the governance structure of listed companies in China is irrational. Second, the disclosure of earnings forecast by Chinese listed companies restricted by the principle of cost-effectiveness. Third, our country lack of effective Suppliers and demanders of the earning forecast information. Four, the system of the disclosure of the earnings forecast information is imperfect; there are no regulatory mechanisms to supervise the disclosure of the earnings forecast information.The stock market of USA is maturest, and it has the most perfect regulations. So learn from the advanced experience of the United States in this regard, will help us to promote the establishment and improvement of China’s listed companies earnings forecast information disclosure system. China can draw form the experiences of the USA. First we can make principled specifications for the Purpose, function, the basic assumptions, principles, content, format and scope of the earnings forecast, and establish some standards of it. Second, establish free-of-civil liability regulations for innocent disclosers. Third, establish update and corrections system of disclosure of earnings forecast. Fourth, establish independent experts predict system composed of financial analysts.After understanding the theoretical basis of the earnings forecast information, and analyzing our earnings forecast information and the advanced experience of US, we can come to know how to solve the problem that the disclosure of the earnings forecast information of our country appears while supervising at the present stage. The recommendations for China to improve the information disclosure system are as follows: first, introduce institutional investors to balance the structure of equities and perfect the system of the board of directors and the board of Supervisors in order to improve the governance structure of listed companies. Second, formulate Specialized norms of disclosure of earnings forecast Information and implement the rules for information disclosure that combines voluntary disclosure with mandatory disclosure in order to perfect the system of disclosure of earnings forecast Information of listed companies. Third, perfect the system of disclosure of earnings forecast information of listed companies strengthens the supervision of the intermediary agencies role, Cultivate high-quality financial analysts and establish sound civil liability regulations of disclosure of earnings forecast Information to strengthen the supervision of disclosure of earnings forecast information. Fourth, accelerate the development of the bond market, improve the quality of small investors and cultivate institutional investors in order to add effective demanders of the earnings forecast information.