Research On Cross-border Supervision Of Information Disclosure Of Cross-listed Company

Holding Foreign Companies Accountable Act(HFCA Act)of the United States comes into effect,which makes Chinese cross-listed companies listed in the United States face the risk of improper disclosure and delisting on the micro level,and forms the risk of regulatory friction diffusion on the macro level.The official implementation of the New Securities Law of China has established the extraterritorial jurisdiction effect of domestic securities supervision,which leads to the transformation of the research on cross-border supervision from the stage of demonstration to the stage of rules design.To meet the urgent need of solving the contradiction to coordination of cross-border disclosure regulatory and the need for improvement of regulatory rules of information disclosure,this dissertation takes advantage of the specific research condition that cross-listed companies have to comply with different disclosure rules in different capital market respectively,and implements the research method of case study so as to analyze the cross-border supervision mechanism of information disclosure and the compliance optimization strategies of company’s cross-border disclosure.The research findings are as follows: First,cross-listed companies are subject to the dual supervision of host country and home country,so it is necessary to bridge regulatory differences and alleviate regulatory conflicts through cross-border regulatory coordination.Second,the information disclosure quality of cross-listed companies is higher than that of non-cross-listed companies.The fact of cross-listing can release a good signal to the investors,but those cross-listed companies need to bear higher information compilation and disclosure compliance costs.Audit compliance is an important mechanism to prevent cross-listed companies from information disclosure failures.Third,in the case of conflicts between home country supervision and host country supervision,and uncoordinated regulatory cooperation,cross-listed companies face risks such as information disclosure compliance and improper information disclosure.These risks are exactly the main reasons for batch delisting of state-owned enterprises from the US capital market in 2022.Fourthly,the fundamental cause of the regulatory risk of cross-listing information disclosure is that there is no long-term and stable cross-border regulatory environment for information disclosure.The existing problems of cross-border supervision of information disclosure include the insufficiency of extraterritorial jurisdiction of domestic law and cross-border regulatory cooperation.Based on the research findings,this dissertation suggests that cross-listed companies should balance the costs and benefits of information disclosure properly and adjust the listing focus accordingly in the practice of information disclosure.Secondly,the company should pay attention to the compliance of regulation and audit engagement;Last but not least,the construction of internal control mechanism should be strengthened to ensure information disclosure compliance and prevent improper disclosure.The regulatory authorities should first clarify the supervision principles and amend the supervision concept;Secondly,it is necessary to consolidate the legal foundation and improve the system and mechanism;Finally,it is necessary to participate in conflict coordination and promote the course of regulatory cooperation.It is hoped that the strategy suggestions in this dissertation can be applied in practice.