A Study On The Motivation Of PT Boyuan Information Disclosure Violations

Capital market is a market of information flow.The truthfulness,completeness,timeliness and completeness in disclosure has been recognized as the foundation and basic guarantee of the protection of the medium and small investors' rights,the improvement of the market credibility and the efficiency of the market function.With the further development of the securities market,our country enacted laws and regulations of the corresponding standard.On 17 October 2014,Securities Regulatory Commission has implemented the new round of reform of delisting system,which clearly defined the significant information disclosure violations will be posed on mandatory delisting.However,China's information disclosure violations are still serious,showing an increasing trend,a considerable part of the illegal behaviors of listed companies is commonplace despite repeated warnings.According to statistics,in 2001~2015,China Securities Regulatory Commission and the Shanghai and Shenzhen Stock Exchange have penalized the illegal behaviors of listed companies of a total of 2010,information disclosure violations accounted for the proportion of up to 90.35%.Among them,more than twice of the information disclosure violations accounted for 45.97%.This will directly affect the vital interests of the hugeness investors.In addition,the behavior of information disclosure violations has emerged new changes,means of illegal disclosure are more diverse and complicated.And the hidden motives behind the complexity of the illegal acts are more secluded,which will directly affect the vital interests of the majority of investors.On 27 March 2015,after Shanghai Stock Exchange have released "delisting rules",Zhuhai Boyuan Investment Co.,Ltd.(600656)(hereinafter referred to as "PT Boyuan")became the first case to be forced to start the delisting system after the landing of the new deal.The Commission publicized the termination decision regarding the PT Boyuan on 21 March 2016.PT Boyuan has become the first case to be delisted for illegal disclosure in A-share market,which means the history of rose,phoenix-like,from the ashes is moving away.Being a PT firm and being de-listed afterwards can be said to be a landmark,which has set a precedent by delisting for illegal disclosure of information.Under the new market environment,the information disclosure violations of PT Boyuan showed characteristics of its longevity,concealment and complexity of means,large sums involved,and extensive influence.Along with the motive of information disclosure violations get complicated,the trend of it combined with market manipulation,insider trading,and tunneling becomes an increasingly prominent problems,which is an abominable and representative case existing in the capital market.However,the case of PT Boyuan is absolutely not the specific one.As the asymmetry of information in capital market of comprehensiveness,it is a common phenomenon for a considerable part of the listing corporation abuse of information disclosure system,and disclose false and alternative accounting information,or even do not disclose.Therefore,this paper would launch concrete discussions to explore the reasons for the illegal disclosure of information.Firstly,this paper reviews and combs of information disclosure violation of existing problems,market reaction and motivation at home and abroad,mainly foucs on the motivation of information disclosure violations of our country and strictly follows the approach of research from theories to case studies.Secondly,by analysing the listed company disclosure violations of our country,we categories information disclosure violations into four types of untrue,inaccurate,inadequate and not standard;analyse characteristics in aspects of industry,financial,market;introduces the basic theory of illegal information disclosure.Finally,based on the above research,the paper introduce PT Boyuan illegal information disclosure case study,review the development history of PT Boyuan from the creation to the manipulation under three actual controllers.Then,through the analysis of means and ways of 8 times illegal consecutive information disclosure over a dozen years,we hold that PT Boyuan information disclosure violations almost covers all the ways,mainly including fictional assets,make up profits,major omissions and delays in the disclosure or even not disclose.In the final analysis,we divided the hidden motivation for the repeated violation mainly into three kinds: in order to obtain and maintain the listing qualifications,to gain the right issues,credit funds and financing,and to realize the actual controller personal gain.In addition,by studying the case study of PT Boyuan,we have come to the conclusion that the means of PT Boyuan information disclosure violation have the characteristics of concurrency,obvious motivation and state dependence.And we draw aspiration that the maintenance of listed qualifications is the main motivation of the information disclosure violations,the transfer of control rights after the information disclosure violations will present new characteristics.Therefore,the contribution of this paper lies in taking PT Boyuan,of more than ten year experience in disclosing against rules,as the research object is of great representativeness.Through establishing analysis of the means and hidden motivations of information disclosure violations and irregularities,this paper aims to help investors and stakeholders hold a further understanding of the means and causes of information disclosure violations,and play a warning role of predict the tendency of information disclosure violations.