Study On The Financial Regulation Of Businesses Listed On The New OTC Market

The New OTC Market has gained a rapid development in 2015, on which the number of listed businesses has increased from more than 1000 at the beginning of the year to over 5000 by the end of the year. It is on the threshold of its own golden age. The New OTC Market is the preferred channel of small and medium sized businesses for financing because of its strong ability of financing and a low threshold of entrance. However, due to its short development time, including the imperfection and a lack of rigor of the regulatory policies, there are still a wide range of financial standard problems remaining in some small and medium sized businesses because they do not make their management standardized by going through the listing process, especially in terms of the finance, which restrict its long-term development, even lead to a delisting in a serious case. In this context, how to help businesses listed on the New OTC Market to standardize the finance, so as to avoid the risks and improve its survival rate after being listed has become the focus of studies on the multi-level capital market nowadays.Based on literature review of the researches on the financial regulation of businesses listed on the New OTC Market, it can be seen that the previous studies focus more on the financial regulation before being listed while ignore it after being listed. By using case analysis and qualitative research method, this paper carries out study on the financial regulation of businesses listed on the New OTC Market. It summarizes and analyzes the earnings data of XX Software Company in 2013 and 2014, revealing its potential financial risks; on this basis, from accountancy norms, management standards, regulation of financial consciousness and financial decision-making, combined with a field survey of XX Software, this paper explores the issues existing in the company’s financial regulation, analyzing the causes. Finally, it proposes corresponding countermeasures.Base on investigation and analysis, this paper summarizes the issues existing in the financial regulation of XX Software, such as poor management of accounting, confused management of funds, improper financial accounting, dependence of tax, backward OA system, unreasonable staffing and division of labor, and so on. In terms of management regulation, the management system and financial system is still imperfect, and there’s a lack of internal control mechanism and a comprehensivebudget system. With regard to regulation of financial consciousness, the quality of staffs is rather poor, and the management ignores the importance of the financial work, and there’s a lack of a corresponding corporate culture. In respect of the financial decision-making norms, there’s a lack of corporate strategy and scientific decision-making procedures, and so on. In response to the issues above, this paper puts forward some countermeasures for the company to improve the financial work and promote the financial regulation.