Study On The Normative Procedure Of Financial Due Diligence Of Listed Companies

Financial due diligence is one of the most important aspects of an enterprise before it goes public.In recent years,the capital market has developed rapidly,and the number of listed companies has also increased,which has created a demand for financial due diligence.Despite the adjustment and counseling before the listing,there was still a phenomenon of disruption of the capital market after the listing,such as a decline in performance and financial fraud.Through analysis,the failure to implement a detailed and standardized financial due diligence process prior to listing is one of the important reasons.Therefore,after undertaking the due diligence project,the securities company should strengthen the management of the project,raise the awareness of standard operation,improve the standardization of the operation of listed enterprises,and promote the healthy development of the capital market.In order to reduce various problems arising from the listing of enterprises,standardize business operations,and through a review of various literatures and practical inspections,we have designed a detailed set of financial due diligence procedures,detailing the various types of preparations in the preparation,implementation and reporting stages.program.The focus is on the implementation stage.The purpose is to discover the business irregularities and financial risks,introduce the Harvard analysis framework,and use the Z-index analysis method,principal component analysis method,financial statement analysis method,etc.for financial analysis.At the same time,the application of this procedure,the introduction of Aijian Securities' s case of financial due diligence on Tiandi Digital,found that the problems in the process of completing the adjustment,such as the due diligence procedures are not implemented,the financial analysis is simple,the risk disclosure is insufficient,etc.And the cause analysis,found that Aijian Securities team lack of professionalism,the company's internal management system is not perfect,the investigation method is simple,the securities company information and enterprise asymmetry,the risk disclosure awareness is insufficient,etc.,combined with the application of the design of the best framework Improve opinions,enhance the professionalism of the team,improve the internal management system of securities companies,enrich the methods of due diligence,enhance the ability to collect information,and strengthen the awareness of risk disclosure and corresponding means.Finally,it is concluded that the securities company needs to pay attention to thedesign of the procedures and the operation of the securities company personnel in the process of implementation,and proposes perfect suggestions for the securities company's standardization procedures.