A Research on the Causes and Consequences of Zhongli Group's Information Disclosure Violations

Abstract

With the advancement of comprehensive and in-depth reform, it is increasingly important to build a market information disclosure system that meets the requirements of the new era. Corporate information disclosure violations are one of the important issues that deserves exploration. Although many scholars have studied the causes and consequences of corporate information disclosure violations, the study of specific events in the context of today's deepening reform can also provide new perspectives. Taking the Zhongli Group's information disclosure violation as an example, this paper analyzes the Zhongli Group's violation motives from both internal and external perspectives, and uses the event study method to analyze the consequences of information disclosure violations. The study found that the external competitive pressure and improper internal business strategy were the main reasons for Zhongli Group to choose information disclosure violations. The exposure of the violation incident not only had a serious negative impact on its stock price, but also caused losses to shareholders, and indirectly reflected the imperfections of the market. Based on the above conclusions, this paper suggests that the government should strengthen ex ante supervision and increase penalties for violations to maintain a good market environment.