Research on the Impact of Regulatory Inquiries Related to Information Disclosure of Listed Companies – A Case Study of ANDON HEALTH

With the rapid development of China’s capital market, many problems arise. Among them, the violation of information disclosure is particularly significant, such as inadequate information disclosure, misleading statements, omission of important matters and other behaviors are common in major listed companies. In this paper, by studying the inquiry of ANDON HEALTH information disclosure by Shenzhen Stock Exchange, the effectiveness of regulatory inquiry is studied by using event study method. It is found that the cumulative excess rate of return of ANDON HEALTH is significantly affected by the inquiry behavior of Shenzhen Stock Exchange. This inquiry behavior caused widespread concern in the market, resulting in the stock price in the short term to produce an obvious callback phenomenon, has a certain incentive effect. However, when ANDON HEALTH admitted that there was a problem of incomplete disclosure of information disclosure, the stock market’s response to the quality problem of ANDON HEALTH information disclosure was not significant.