The Case Study Of Lubei Chemical's Positive Reaction After Illegal Information Disclosure

Stock Market is a market with circulating information.Openness,fairness and justice are the basic requirements of a stock market.With the continuous development of market economy,financial securities and stock market are becoming irreplaceable parts of economy,and they have made tremendous contributions to the national economy.Therefore,how to promote the development of stock market has becoming an important issue of economic construction and social development and the primary task of various countries and areas.According to the history of Stock Market,information disclosure is becoming more and more normative and we nowadays pay more attention to protect and promote the benefit of investors accompany with the process of Stock Market developing.Information disclosure is a main channel of information exchange between listed companies and securities investors.An adequate and timely information disclosure system can not only avoid securities-fraud and unfair,but also increase the transparency and reliability of a Stock Market.It can also raise the investors' confidence,so that the capital market can play its role in resource allocation to improve the development of national economy and ensure the constant improvement of stock market.Information disclosure system has been developed about 20 years in China,we have made a great progress in the system construction,but nowadays the problem of information disclosure violation has been repeatedly exposed,and there are more and more listed companies have been disposed by Supervision departments,such as Enron Corp,SEIBU Railway,Hangxiao and Yinguanxia.The phenomenon of information disclosure violation has been disappeared in neither developed countries nor developing countries.What was worse,the violation problem is becoming more severe,which has caused huge losses to investors and disrupt the normal order of securities market.In view of this phenomenon,regulars take lots of measures,such as warning,penalty,even give criminal sanctions to some parties.The punishment for information disclosure violation will affect the development of the company in the short term,even worse,the effect will last for a long time.So no matter what kind of the violation is,it will absolutely drag the companies' feet,but there are still much companies punished by supervision departments for different kinds of reason,whether the market rules is more and more complete or the business activities is more and more complicated,the number of companies with violation problem is rapidly increasing.Since the violation has been happened,it's important to reduce the negative affection of the violation.In this book,the information disclosure violation case of Lubei Chemical is chosen to illustrate the effects of the actions,including positive communication with the outside world,change the management and improve the internal system of the company,Lubei Chemical toke to reduce the negative effect bring by the punishment from Securities Regulatory Commission and Shanghai Stock Exchange after the information disclosure violation was exposed.First I will introduce the present situation of information disclosure,classify the information disclosure through analysis of data,then I will make the theory foundation by study the research by domestic and foreign researchers of Information Disclosure System and illegal Information disclosure.Then I will analyze the actions taken by Lubei Chemical to the punishment by Securities Regulatory Commission and Shanghai Stock Exchange,including a change in top executives,a change in system and assets reorganization.I will analyze Asset performance and market reaction to prove Lubei Chemical's actions are effective to reduce the bad influence of information disclosure violation punished by relevant departments.At last of this thesis,I will give suggestions to companies with information disclosure violation problems by summarizing the experience.Condemnation and punishment are just warnings to listed companies' incorrect behavior,it is more important to find the reason of information disclosure violation,illuminate the bad influence and regain the confidence of investors,which is the right attitude towards condemnation and punishment.Through this article,I want to give the companies who are punished because of violation some enlightenments.By successful rectify and reform,Lubei Chemical return to profitability and got away from Special treatment,the experience of Lubei Chemical can be very helpful to those companies punished especially for information disclosure violation.