Research on the Economic Consequences of S Company’s Fraudulent Issuance in Refinancing Under the Registration System

Abstract

In the process of the capital market’s comprehensive shift from the approval system to the registration system, the focus of supervision has moved from ex-ante examination and approval to in-process and ex-post supervision, and “taking information disclosure as the core” has thus become the core logic of the reform. Against this background, the importance of the construction of corporate integrity and the quality of information disclosure of listed companies has become increasingly prominent, which is not only related to the effective operation of the capital market, but also has a significant impact on the in-depth advancement of the registration system reform. This paper selects the fraudulent issuance incident in S Company’s refinancing after the implementation of the registration system as the research object to investigate the economic consequences caused by such behavior. The study finds that in the refinancing process, S Company misled the market through means such as fabricating transactions and concealing risks, resulting in direct damage to investors’ interests, abnormal stock price fluctuations, and the company itself falling into operational difficulties with a sharp decline in reputation. The incident has impacted the market order of the medical informatization industry and also put the regulatory efficiency under the registration system to the test. It can be seen that improving the regulatory system of the registration system and strengthening the protection of investors’ rights and interests are the key paths to promoting the steady progress of the registration system reform.