Author(s)

Keyu Bian, Runxin Ge, Zhitong Ren

Corresponding Author

Keyu Bian

ABSTRACT

Information disclosure of listed companies is an important way for enterprises to communicate with investors and the public, and is the main channel to ensure information disclosure. Therefore, information disclosure is an important link in the development of enterprises. This paper focuses on the information disclosure violations of listed pharmaceutical companies in China and finally selects the information disclosure violations of Furen Pharmaceutical as the research object. Through the event study method, the paper first introduces its general situation and violation situation and analyzes the short-term impact of information disclosure violation of Furen Pharmaceutical on stock price volatility. Secondly, by analyzing the data of financial statements, it studies the long-term impact of irregularities on performance indicators. Through the study of short-term impact, it is found that the violation of information disclosure greatly affects the stock price and hurts the market. In terms of long-term impact, the company's performance declined significantly due to the violation of information disclosure of Furen Pharmaceutical, and several senior executives were punished by CSRC.

KEYWORDS

Furen Pharmaceutical, accounting information disclosure, stock price, event research method