Research On The Financial Compliance Of The Enterprises To-be Listed On The NEEQ

The NEEQ is the third national securities exchange place after Shanghai Stock Exchange and Shenzhen Stock Exchange.It is also the largest OTC market in China.By the end of 2016,the number of listed companies had been more than 10000.After the high-speed expansion stage,enterprises are more rational in being listed.But the NEEQ is an important part of the multi-level capital market in China.It is significant for small and medium-sized enterprises to broaden the financing channels so that they can deleverage.Therefore,listing on the NEEQ will still be an important choice for many small and medium-sized enterprises to enter the capital market.The enterprise's financial compliance is not only an important problem to be solved in the process of listing on the NEEQ,but also an important significance to improve the management level of the enterprise governance.As many medium-sized and small is in the early stages of development,the owner's awareness of compliance is not enough,the company's management and governance structure is not perfect,so in the pre-preparation,many companies were exposed in the problem of financial compliance.They have to pay a lot in solving the problems of financial non-standard place.On the other hand,for the NEEQ,on the background of numerous enterprises had been listed,the urgency of protecting the interests of investors so as to promote the healthy development of the market is strengthen.This research focuses on the research of financial regulatory issues of the enterprises to-be listed on the NEEQ.Firstly,from the theoretical point of view,the concept and significance of financial compliance,the current situation and development trend of the financial compliance of the NEEQ are introduced.In the next part,this paper compares the NEEQ with the NASDAQ in three aspects of the hierarchical management,the management of intermediary and the delisting rules.Then,this paper introduces the requirements of listing on the NEEQ.According to the statistics of 342 feedback opinions from NEEQ and the financial irregularities from 2014 to early December 2016,this paper make a quantitative description of the financial compliance,to find out the specific questions with high frequency such as occupying funds so as to take them as the emphasis of the work of enterprise financial compliance.In the part of case study,this paper on the basis of the previous text to analyze M company,which is to be listed in the NEEQ,in related transactions,revenue recognition,cost accounting and other financial problems then come up with the solutions to the problems.Next,this paper analyzes the causes of the problem and how to improve the situation from the three aspects.At last,this paper puts forward some suggestions on how to improve the degree of financial regulation of the companies to-be listed from the aspects of intermediaries,regulators and enterprises,summarizes the research conclusion and limitations.