Research On The Reasons And Consequences Of The Earnings Forecast Correction In The Performance Of Listed Companies

Performance forecast system is an important part of information disclosure of listed companies.Since 1998,China's securities market has gradually established a semi-mandatory performance forecast system.Since the implementation of the performance forecast system,the performance of the performance forecast correction has been repeatedly banned.Beingmate actually changed its performance forecast nine times in 5 years.In 2017 alone,Beingmate changed its performance forecast twice.The difference between the performance forecast and the actual revised performance exceeded 800 million yuan,and the performance was downward adjustment,which caused serious harm to investors.TheChina Securities Regulatory Commission warned this.So why does Beingmate have such a frequent performance forecast correction?What kind of consequences does it have?How to prevent the performance of listed companies from the performance forecast correction?This article will focus on the above issues.Based on the literature review,institutional background introduction and theoretical analysis,this paper establishes a case theory analysis framework and uses Beingmate's case data for specific analysis.The study found that there are three main reasons for Beingmate's performance forecast correction:internal control system defects,management expectations optimistic bias and performance forecast system defects.Among them,the defect of the internal control system is the root cause of the performance forecast correction,and the deep reason for the internal control defect is the failure of corporate governance.The consequences of frequent performance forecast correction in performance forecasts include:institutional divestment,falling stock prices,penalties imposed by the Securities and Futures Commission,and damage to brand image.This paper believes that we can start from the following aspects to prevent the performance forecast correction:Establish a sound penalty mechanism for performance forecasting system and strengthen securities supervision;Introduce pre-audit of CPAs to improve the quality of forecast information disclosure;Establish Sound and perfect corporate governance can help improve the quality of internal control;Realizing the effectiveness of internal control can help improve the quality of corporate information disclosure;Establish a supervision and control mechanism to curb excessive expectations of management.The main innovation of this paper is to reveal the impact mechanism and consequences of internal control and corporate governance on performance forecasting,and expand the research content of the performance forecast correction.The main contribution of this paper is to provide a certain reference for enterprises to improve the quality of information disclosure;provide some reference for the securities regulatory authorities to adjust the punishment standards and improve the punishment effect;provide some ideas for investors to make investment decisions for corporate forecasting behavior.