Annual Report Inquiry Letter Supervision,comparability Of Accounting Information And Risk Of Stock Price Crash

In the context of the rapid development of the financial market and the reform of the mode of regulation,the stock exchange is responsible for the external control of companies listed on the market.There is a need to strengthen the external supervisory effect,adhere to the policy direction of strengthening ongoing and post-operation supervision,and establish the appropriate investigative regulatory system for the Chinese capital market,which will not only help to strengthen the disclosure of publicly traded companies.It also plays a key role in improving the system of capital market surveillance.With the frequency of hot events of listed companies in recent years,the regulatory system of investigation letters has become the new normal and new trend of the regulatory model.The number of letters of inquiry issued by the fellowship is increasing year by year.The stock exchange actively maintains the stability of the capital market,takes responsibility for external investors by "putting itself on the front line" and investigates the most important events of concern to investors in order to improve disclosure.Maintaining the "harmony and beauty" of the capital market,strengthening the external governance role of market regulation,different from the previous regulation on administrative sanctions,investigation letter is an innovative mechanism of post-currency penalty verification,although it has some speed and authority,but in the context of the unbalanced development of the Chinese capital market,Investigation letter supervision can achieve the expected regulatory effect.The issue of most concern to users of accounting information,including investors,is whether there are differences in the regulatory effect of the different characteristics of the annual report investigation letter,which merits further investigation.Combined with the current innovative supervision model of the capital market,this paper takes the A-share listed companies in Shanghai and Shenzhen from 2012 to2021 as a research sample to explore the relationship between the supervision of annual report inquiry letters,stock price crash risk and the comparability of accounting information.Next,we look at how regulation affects the risk of stock market crashes.The results of the study indicate that:(1)regulation of annual report newsletters can significantly reduce the risk of stock market crises;(2)comparability of accounting information can also significantly reduce the risk of a crash in share prices;(3)comparability of accounting information can reinforce the negative correlation between checking the information letters of the annual report and the occurrence of a stock market crash in a company;(4)further analysis revealed that the degree of information asymmetry and agency costs would have a partial intermediate effect between the regulation of the annual report investigation letter and the risk of stock market crash;In other words,the regulation of the annual report investigation letter can significantly reduce the degree of information asymmetry and reduce agency costs to reduce the risk of stock market crash;(5)the question of the letter addressed to the requests of the annual report,answered,the degree of detail of the intermediate dimensions found that many of the questions raised in the annual report information intermediate letter,answered to an opinion and the degree of detail with the stock exchange at its own risk,A significant negative correlation reinforces the effects of the regulatory action price collapse newsletter further strengthen the market surveillance role of newsletter regulation.The main contributions of this article are as follows: first,it examines how the regulation of investigation letters has had an impact on the fall in company share prices in view of the annual regulation.It enriches the study of the economic consequences of regulating investigation letters while helping to clarify the logical relationship between the two.Secondly,the comparability of accounting information was integrated into the study and the role of governance analysed,enriching existing theoretical studies on the comparability of accounting information and increasing the response of listed companies in the event of a crisis.Finally,this paper clarifies the characteristics of the investigation letter and examines the effects of a stock market crash,giving the stock exchange ideas for improving surveillance and effective surveillance.