Research On The Reasons Of Oriental Times Media Company Performance Forecast Corrections

Performance forecasts have played a major role in easing information asymmetry and releasing performance risks.This kind of predictive financial information reflecting the operating conditions of listed companies has attracted more and more attention from investors.In recent years,it has been very common that performance forecasts of one listed company being corrected several times,which has brought huge losses to investors.China has established a relatively complete performance forecasting system,and has made detailed regulations on the time and content of information disclosure of listed companies.However,frequently revised performance forecasts have not been effectively curbed,which makes us think that: What are the main reasons why listed companies have changed their performance forecasts many times? How to make the performance forecast play its due role?This paper selects Oriental Times Media Company as the research object.On the basis of in-depth analysis of the operation,industry environment and financial reports of Oriental Times Media Company,this paper tries to explore the reasons for the frequent revisions of the performance forecasts from the four aspects: financial reporting,business operations,corporate governance and policy supervision.The research shows that the overall performance forecast system in China is still not perfect.The punishment of the frequent revisions of performance forecasts of listed companies by regulatory authorities is insufficient,and the cost of the performance forecast corrections is low.These are all important external reasons for the frequent revisions of performance forecasts of listed companies.The failure of internal control systems and the defects of corporate governanceis one of the internal causes.Based on information asymmetry theory and principal-agent theory,when internal and external supervision fail,major shareholder and management of listed companies tend to manipulate performance forecast information due to private interests by means of earnings management.At the same time,the listed company's performance forecast revised downwards may be related to the previous imprudent accounting treatment by the company,which means that the huge changes of the listed company's performance forecast is not completely imperceptible.Some clues can be found in the business operations of the company.This article makes recommendations from three perspectives: regulatory authorities,listed companies,and investors.First,regulatory authorities should make mandatory requirements for external pre-audit,clarify the time limit,content and frequency of performance forecasting,clarify the civil liability and compensation scope of performance forecast violations,and establish an evaluation system and monitoring mechanism forperformance forecast.Second,listed companies should change the misunderstanding of the disclosure of performance forecast in formation,improve the corporate governance structure and internal control mechanism.Third,investors should raise awareness of risk prevention and pay attention to companies whose performance forecast may make changes,so as not to be misled by wrong information and make investment decisions with caution.