Research On The Cause And Influence Of Frequent Revision Of Tianqi Lithium Corporation’s Performance Forecast

Although our country is constantly improving the performance forecast system,there are still loopholes in the current performance forecast system.Listed companies seize the loopholes in the rules to disclose inflated expected performance information.It is relatively common for listed companies to preview performance correction.These phenomena will aggravate the information asymmetry in the capital market,which is not conducive to improving the transparency of the information of listed companies,maintaining the good order of the capital market,and preventing the risk of listed companies and investors.Based on this background,by analyzing the reasons and influences of the frequent revision of Tianqi Lithium Corporation’s performance forecasts in 2013 and 2019,this paper tries to find out the reasons for the frequent revision of listed companies’ performance forecasts,what impact the frequent revision of performance forecasts will have,and puts forward corresponding suggestions.Based on the internal control theory,information asymmetry theory,signal transmission theory,and high-level echelon theory,this paper takes the cases of Tianqi Lithium Corporation’s frequent revision of performance forecasts in 2013 and 2019 as the research object,to explore the reasons and effects of the frequent revision of performance forecasts.By reviewing the history of Tianqi Lithium Corporation’s disclosure of performance previews and revisions from its listing to 2021,it can be found that the number of revision of performance previews will increase abnormally after the company makes overseas acquisitions.The main reason is that overseas acquisition generates a large amount of loans,which will affect profits and liquidity of funds.At the same time,Tianqi Lithium Corporation also has deficiencies in internal control of performance forecast,resulting in low quality of the company’s performance forecast information.Tianqi Lithium disclosed the falsely high performance information through its performance forecast,and then revised the performance information downward through frequent and multiple corrections.Tianqi Lithium Corporation frequent revision of its performance forecasts in 2013 and 2019 caused abnormal stock price fluctuations,which harmed the interests of minority shareholders.The company came under the scrutiny of regulators in 2019 and received critical penalties that hurt its reputation.On the basis of the above research,management suggestions for listed companies and policy suggestions for regulatory agencies are proposed.