The Economic Consequences Of A False Statement Of Accounting Information

The information quality of accounting is closely related to the order of securities market,and promote the quality of information disclosure is not only beneficial to the healthy development of the market and the market information for cost saving,but also can protect the rights and interests of investors and restore investors' confidence for the market,enhance the vitality of the market,provided a basis for the rapid development of the securities market in China.False statements of accounting information has been an interesting problem on securities market in China,the dangers of false statement for the market and the impact on the investors have serious damage to the securities market allocation of resources,reduce the efficiency of the market,brought very bad effect to market participants.Analyzing the reason of false statements and seeing economic consequences can better guided by fraud motivation and economic consequences to put forward the improvement measures with practical operability.Influence and harm of false statement has a lot of literature research,participants' administrative penalties are relatively clear,then what is coming for the companies and participants,whether these consequences have deterrent effect,we still are vague.Therefore,this study focus on the accounting information on the economic consequences caused by false statement,has important research significance.This article first expound penalties the concept of interpretation and the performance of the normally of the false statements,regulatory penalties and economic consequences.Then on the basis of analyzing the present situation of regulation punishment in our country securities market,the article introduction the case company Wanfushengke of false statement,and discuss the internal and external reason of false statements in Wanfushengke.Moreover,we use actual data to support the economic consequences of false statement,this paper emphatically compare and analyze the reputation mechanism for independent directors in the future.Finally,based on these reasons and warnings founded in the process of analysis,we provide some suggested measures for preventing accounting information false from the internal of governance,the external of regulation environment and intermediary service agencies.By studying the case company Wanfushengke' economic consequences of the false statement,we find that:(1)the reason of the false statements could development,not only lies in the deficiency in the internal governance,but also the external intermediary service quality and the government regulation on the efficiency of existing vulnerabilities,these provide possible conditions to the false statements.(2)in the economic consequences of accounting information false statement,with the development of the Internet and media supervision,reputation punishment may play a most deterrent role to the company executives,independent directors and intermediary agencies,in the current environment,reputation punishment is more unbearable pain compared to the economic punishment.(3)in the projects to prevent accounting information false statement,we couldn't only value the regulation,from the company's internal source to curb fraud motivation and use reputation punishment mechanism to constraint the intermediary service institutions are more effective prevention plans.