The Study On The Punishment Effectiveness For Information Disclosure Violations Of Listed Company

Frequent false information disclosure had a significant effect on the development of China’s capital market. The information disclosure violations not only seriously affected the normal operation of the capital market, also caused damage to the interests and confidence of the investors indelibly. At present, in order to control information disclosure violations, the supervision institution had issued relevant policies and regulations to punish information disclosure violations, but the punishment effectiveness had yet to be further investigation.Based on the reality of China’s capital market, through classification and disposal to the data of "CSRC’s Enforcement Actions Research Database" and "CSMAR China Stock Market Trading Database", the 497 violations that listed companies and their executives punished by CSRC, Shanghai stock exchange and Shenzhen stock exchange due to information disclosure violations between 2010-2014 as the research object, the paper made a series of discussions on the "punishment effectiveness for information disclosure violations".Therefore, the paper mainly carried out the study from two aspects, first, the information disclosure violations and punishment characteristics were analyzed. The "whole characteristics", "industry characteristics" and "financial characteristics" as footholds, the paper discussed the information disclosure violations of listed company, and analyzed the characteristics of information disclosure violations. The paper also deep analyzed the information disclosure violations punishment of listed company from four aspects which including "different years", "different types of violations", "different supervision institution" and "different violations object", revealed the present situation that the information disclosure violations punishment of listed company. Second, the punishment effectiveness for information disclosure violations was analyzed. From the two aspects that the market reaction and deterrent force of punishment, the paper combined the positive analysis and statistical analysis to further explore the punishment effectiveness for information disclosure violations of listed company. The positive analysis was mainly studied by means of the event study and multiple linear regression model, while the deterrent force of punishment was studied from three aspects which including the overall situations of the company punished again, the time interval situations of company punished again and the violation again situations under different punishment means.The results showed that:different punishment had different deterrent force, but on the whole, punishment for information disclosure violations by supervision institution was ineffective, therefore, the supervision institution should further improve the constraining force to information disclosure violations. Aimed at the current situation of the information disclosure violations, the paper also put forward some proposals to improve the security of market environment, protect the interests of the investors and realize the sustainable development of capital markets.