Study on the Factors Affecting Disclosure of Profit Forecasts of IPO Companies

Abstract

In response to the worsen credibility of projected profit information, China's Securities Regulatory Commission declared the institution of earnings forecast would transfer from mandatory to voluntary in The public offering of the securities of the company information disclosure content and format- Prospectus. Since voluntary disclosure is applied to profit forecasts of IPO companies in China, the proportion of companies disclosing such information has been declining generally. From this perspective, empirical study is conducted on the disclosure of profit forecasts of 718 listed companies with initial public offering of A shares in 2007-2012. Based on the independently built evaluation indicator system for disclosure of profit forecasts, structural equation model is used to study that, the disclosure of a listed company's profit forecasts, to some extent, will be affected by the company's financial position, corporate governance structure and external factors, presenting obvious positive correlation.