Jade Bird Huaguang Case Analysis Of Information Disclosure Violations

As the security market develops rapidly in China,one phenomenon can be found in the growing quantity,scale and competitiveness of our public companies.To meet the needs of the investors and market regulation under the new situation,China is also constantly perfect the construction of information disclosure system.Even though,the events of illegal information disclosure continually occur,it showed that they are still flawed in the information disclosure system and the current supervision system.This article analyzes illegal information disclosure of Jade Bird Huaguang,the causes of this case are not honest in disclosing actual controller,using unfair related transactions to create fictitious profits and creating fictitious sales from the loss of commercial nature of transactions.After the retrospect of the malfeasance,we try to find out the reasons from the inside and outside of the company.The inside reasons include the ownership structure,the governance structure and the corporation economic status.The faultiness of relevant laws and regulations,the weakness of supervision degree and the effect of external audit has not been brought into full play,these three factors account for the outside reasons.The event not only damages the company image,but also misleads investors losing benefits and raises high concerns of public.It's also the sad lesson for companies,investors and the domestic securities market.In the end,we put forward a few suggestions to improve the information disclosure system,including enhancing the construction of company culture,constraining the management behavior through ethical and moral mechanism,increasing the cost of violation of law and regulating the professional ethics of certified public accountant which can improve their independence.