A Study Of The Regulatory Effect Of Multiple Inquiries From Exchanges

With the rapid development of China’s capital market,the traditional information disclosure regulatory system can no longer keep up with the changing market environment,and the problem of information asymmetry between companies and investors has become more and more prominent.In response to the rapid changes in the capital market in the context of the new era,securities regulators have introduced a regulatory measure such as an inquiry letter.In recent years,the number of inquiries issued by Shanghai and Shenzhen has been increasing,and the system has gradually become one of the most important non-administrative punitive regulatory measures for stock exchanges.Therefore,it is of great practical significance to study the current situation of the supervision and implementation of inquiry letters.This paper selects the case study of three inquiries conducted by Shanghai Stock Exchange on Xiamen Huaqiao Electronics Co.,Ltd.,mainly uses the literature research method,case study method and event research method to analyze the effect of the supervision of exchange inquiry letters,and draws corresponding research conclusions and gives relevant suggestions based on this.Firstly,this paper sorts out the three inquiries issued by the SSE,summarizes the background and specific reasons of the SSE’s inquiries,and provides a basis for the case analysis below.Next,this paper focuses on the regulatory effect of exchange inquiries,and conducts specific research on the impact of inquiry letters on information disclosure,market value,and the subsequent behavior and stakeholders of the company,and finds that regulatory inquiries not only have a certain impact on the company’s information disclosure,but also have a positive effect in other aspects.After the above analysis,this paper also finds the limitations of the regulatory inquiry of the SSE,and puts forward suggestions for raising the response requirements and improving the enforcement mechanism accordingly.Finally,after case analysis,this paper concludes that the successive inquiries of the SSE have certain effectiveness in improving the adequacy and authenticity of the company’s information disclosure,but the effect is limited.The frequent issuance of inquiry letters will have a certain impact on the company’s market value,internal executives and external information users,etc.,play a positive role,and standardize corporate behavior.The innovation of this paper mainly lies in the existing research on inquiry letters,usually using empirical methods for research,this paper starts from the case,not only focuses on the effectiveness of inquiry supervision,but also pays attention to the limitations of inquiry letter supervision in the case,more in line with the specific situation of real enterprises,provides suggestions for promoting front-line supervision,and provides more inspiration and warnings for enterprises in similar situations,in addition,most of the existing literature research on inquiry letters focuses on annual report inquiries.However,the inquiry letter studied in this article is aimed at the quarterly report inquiry letter and the performance forecast inquiry letter,so this article is somewhat innovative in the selection of cases.The research conclusions of this paper fully affirm the regulatory effectiveness of China’s exchange inquiry letter system,and can provide some reference for front-line regulatory authorities and other listed companies.