The two-level analysis of disclosure of profit forecasts-empirical evidence from IPO companies
On March 15, 2001, the Rules on the Content and Format of Information Disclosure of Companies that Publicly Offer Securities No. 1-Prospectus released by CSRC marked the change of disclosure method for profit forecasts of IPO companies from mandatory to voluntary disclosure in China. Nevertheless, the proportion of companies disclosing profit forecasts in total IPO companies fell significantly after the change of disclosure method in 2001. Now the questions are why those IPO companies are increasingly reluctant to disclose the profit forecasts information? Which kind of factors influences the level of the disclosure? This paper chooses some IPO reformatory companies of A shares from 2007 to 2011 as samples to conduct the two-level analysis to its disclosure of the profit forecasts information. The first level analysis uses the logistic regression to study the influencing factors of the disclosure of the profit forecasts information of those IPO companies. On the basis of building the evaluation index system of the disclosed level on its own, the second level analysis probes into the influencing factors of the level of the disclosure of those IPO companies by means
of the multiple linear regression models. The ultimate empirical demonstrations will offer some suggestions to the decision makers and regulators of the IPO companies to improve the present environment of the profit forecasts disclosure.