Abstract

Info

Keywords:: listed corporation; opportunism; earnings manipulation; securities inspection

Abstract:: Traditionally，a perfect legal system is thought to be the main approach to curbing speculativebehavior of the listed corporations. However，why do the company speculations still happen in securities marketdespite the improvement of Chinese legal system? The crux of the problem lies in the lack of implementablepunishments in the legal system. From the perspective of the implementation of the law，this paper reexaminesthe speculations of the listed companies and the validity of Securities Regulatory Commission’ssupervision. It is found that under the condition of putting under control the local governments’ expectation ofinterests on the listed companies，a forceful supervision can effectively reduce the speculation committed bythe listed companies. On this basis，we offer some concrete recommendations to curb speculation of the listedcorporations in order to protect the rights of investors.