Study On The Causes And Countermeasures Of "Face Changing" In The Performance Forecast Of Henan Yicheng New Energy Co.,Ltd

Since its establishment in 1990,China’s securities market has rapidly grown into an indispensable role in China’s economic system in just 30 years.In order to promote the development of the stock market towards a fair and transparent direction,and safeguard the vital interests of the majority of investors.China began to implement the performance warning system in 1998.However,the internal and external environment of China’s securities market and companies is complicated,leading to the phenomenon of "face changing" in the performance forecast of listed companies from time to time,causing serious damage to the rights and interests of small and medium investors in China,but also hindering the healthy and stable progress of China’s capital market.Therefore,I believe that it is urgent to study the causes of the phenomenon of "face changing" of performance announcement and its economic consequences,and put forward targeted solutions.In this paper,the "face changing" of phenomenon of 2020 performance forecast of Henan Yicheng New Energy Co.,Ltd is selected as the research object.Literature research method and case study method are adopted.Firstly,the relevant literatures of performance forecast at home and abroad are preliminarily sorted out,and then the development and related theories of performance forecast system in China are discussed.Secondly,it reviewed the whole process of the "face changing" event of the performance announcement of Henan Yicheng New Energy Co.,Ltd in 2020,analyzed the causes and economic consequences of the phenomenon,and put forward corresponding countermeasures according to the reasons of the "face-changing",and finally drew the following conclusions:First,the main reasons for the "face-changing" of performance announcement are as follows: the epidemic situation leads to the decline of corporate financial performance,the instability of leadership leads to the failure of internal governance of the company,the cooperation with the company’s executives to sell and cash out,the imperfect performance announcement system,the lax supervision of relevant departments,and the difficulty of risk control in the industry.Second,the economic consequences of the performance announcement "face changing" behavior are: the company’s stock price fluctuates significantly or even falls after falling,the damage to the company’s image affects the long-term development of the company,damages the rights and interests of small and medium investors,and destroys the stability of China’s securities market.Third,effective measures to curb the phenomenon of "face changing" in performance announcement are as follows: From the perspective of strengthening corporate governance,we should give full play to the supervisory role of the board of supervisors and external pre-audit on performance forecast,strengthen the internal control level of the company focusing on the internal environment,improve the emergency management plan of enterprises under the problem of business uncertainty,and establish the independent director system with modern enterprise characteristics.From the aspect of strengthening external supervision,establish a market supervision system combining various aspects of supervision,continuously improve the performance warning system including science and technology innovation board,and significantly increase the punishment to maintain the accuracy of information;From the investor level,we will continuously improve the information discrimination ability and prevention awareness of small and medium investors,so as to reduce the incidence of "face changing" in performance announcement as much as possible,and create a healthy and stable market environment.