A Case Study Of Accounting Information Disclosure Violation Of ST Zhonghe

Accounting information disclosure is the first way for many investors to understand the business results and financial status of enterprises.The authenticity and integrity are the basis for ensuring the healthy operation of the securities market and protecting the rights and interests of small and medium-sized shareholders.However,according to the supervision of the CSRC,the proportion of the listed companies punished for information disclosure violations is still high,which shows that the current situation of information disclosure of listed companies in China is ill grim.Once these violations are exposed,it will greatly damage the company's reputation,resulting in a decline in market value,stock prices and even forced delisting,which has severely damaged the confidence of investors,and the company's financing costs will also rise accordingly,resulting in a chain reaction.This phenomenon deserves wide attention.In this case,it is of great practical significance to study the problem of accounting information disclosure violations and provide suggestions for regulating the information disclosure market.~*St Zhonghe,whose full name is Fujian Zhonghe Co.,Ltd.,was officially listed on Shenzhen Stock Exchange on October 12,2006.At the beginning of listing,the company mainly engaged in the printing and dyeing business under the textile sector.In 2012,the company made strategic transformation and entered the new energy lithium battery industry.However,since 2015,the company's operation has suffered losses,and the company has been suspended from listing in 2018 due to three consecutive years of losses.During the three years,the company had repeatedly encountered major accounting errors,false profits in regular reports,violation of performance forecast,and major events not disclosed in time,which had been constantly warned by Fujian securities regulatory bureau.In 2017,the company was put on file by China Securities Regulatory Commission for investigation.At the end of 2018,a penalty announcement was issued and the listing was finally terminated on May 17,2019.This paper takes ~*St Zhonghe as the research object.According to the existing literature research at home and abroad,starting from the company's violation history,this paper analyzes its various information disclosure violations,including the existence of false records in regular reports,performance reports and major events not disclosed in time.It is found that the main causes of violations include: whitewashing performance,reducing delisting risk,failure of internal control,and inadequate laws,low cost of violation,poor supervision,etc.These violations have brought adverse effects to both market investors and the company itself.In view of the above problems,this paper puts forward the following suggestions to other listed companies: first,to improve operating performance,understand that whitewashing performance is not the fundamental way to solve the delisting problem;second,to improve the internal control system,diversify the shareholding structure,improve the risk assessment system,and strengthen supervision;third,to strengthen the supervision of the securities market,give substantive power to the stock exchange,and make full use of public opinion supervision and other channels.The fourth is to increase the cost of information disclosure violations of listed companies,improve laws and regulations,improve the civil compensation system and criminal responsibility.I hope that the conclusions and suggestions in this paper could provide reference for other listed companies and external regulators.The whole society work together to build healthy and stable securities market,create excellent investment atmosphere for capital market participants,and reduce the occurrence of information disclosure violations.