Research On The Violation Of Information Disclosure In The Select Of NEEQ

In recent years,with the continuous improvement of China’s construction of multi-level capital market,especially after the emergence of the Select,the Securities Regulatory Commission issued the "Guidelines for the Supervision of the Transfer of Listed Companies to the NEEQ" in June 2020 to create a channel for the NEEQ companies to enter themain board of the stock market.Meanwhile,the difference in the quality and requirements of information disclosure is one of the important differences between different levels of capital markets.The existence of information disclosure violations is an important factor in judging the quality of information disclosure of a company.Therefore,many scholars have conducted a lot of empirical and case studies on the disclosure violations of A-share listed companies in Shanghai and Shenzhen,and the NEEQ.However,few scholars have studied the disclosure violations of the Select.At a time when all the Select companies have been panned and landed on the BSE under the same listing conditions and the Select has been cancelled,it is necessary to investigate and analyze the disclosure problems exposed by these companies during the operation of the Select to promote the BSE companies to better fulfill their disclosure obligations.Based on this,this paper uses a combination of mathematical analysis and case studies to study the disclosure situation of the Select as a whole and the representative company of the Select,Tonghui Information Technology Company,as the object of the study,from the whole to the specific case of disclosure violations.The study of disclosure violations in the Select as a whole and specific cases.In the study of information disclosure of the Select as a whole,this paper manually compiles the violation data and information disclosure violation data of the Select companies and their upper and lower transferable boards of STAR,GEM,and the innovation layer companies during the listing period of the Select by using the violation events and the original violation announcements of the violating companies in the i Fin D database as the original data,and conducts a statistical analysis of the current situation of information disclosure violations of the Select within the board,and I also analyzed the disclosure violations of companies in the Select and its upper and lower transferable segments by comparing them with each other.In the section of disclosure violations for the Select as a whole,this paper finds that:(1)there are three types of overall violations and ten specific violations for the Select companies during the operation of the Select.The disclosure violations of the Select companies are mainly related to the companies themselves and do not have a board tendency.(2)There are nineteen main types of violations and thirty-nine specific violations in the disclosure violations of the Select and its upper and lower transferable board companies during the operation of the Select among which the board with the highest number of violations is the innovation layer,and the violations with the highest number of violations are untrue,inaccurate and incomplete financial statement information.(3)Information disclosure violations are the main types of violations for the Select companies.This paper then selects the typical case of disclosure violation in the Select,Tong Hui Information,as the research object,digs deeper into the motivations and impacts of its various violations,and constructs governance measures for Tong Hui’s disclosure violations based on its violation motivations.this paper finds that.(1)Due to the limited supervisory capacity of the NEEQ,there are still many disclosure violations of Tong Hui Information Technology Companythat have not been discovered by the regulator.(2)There are variously internal and external motives for the five disclosure violations of Tong Hui Information Technology Company,among which the shortage of liquidity and lax penalties for violations are the main motives for the disclosure violations of Tong Hui Information Technology Company,which are also common motives for disclosure violations of the NEEQ companies.(3)The disclosure violation of Tong Hui Information Technology Company will not bring a large negative impact on its company operation and the executives involved,but it will directly damage the interests of small and medium-sized investors and undermine investors’ investment confidence in the NEEQ and the BSE.As the existing information disclosure literature is more for the overall empirical study and typical case study of Shanghai and Shenzhen A-shares and BSE,and for the information disclosure study of China’s multi-level market,it supplements the information disclosure study of the Select.At the same time,since the BSE has not yet been established,this paper’s research on the disclosure of selective layer companies panned to the BSE will provide some evidence for the BSE regulators to further improve the quality of disclosure of BSE companies.