Study on Financial Forecast System of Public Companies and Securities Investors Protection

• Main Authors: JEN CHIN, 陳仁瑾
• Other Authors: Lee, Kai-Yuan
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/vy266c

碩士 === 銘傳大學 === 法律學系碩士班 === 94 === Information plays a crucial role in influencing the price of the stock in the stock market. Therefore, the fair disclosure of the information has been the important principle of the stock market. Financial forecast is part of the information disclosure. However, there has been continuous criticism towards the forecast system since its practice a decade ago. The inaccuracy of the information and the high updating rate might have been to blame. Moreover, according the accounting result, the specific timing of the financial forecast somehow affects the price of the stock, and it also leads to doubts of the possibilities of insider trading. What’s more, one cannot help but to concern whether it may be used as a tool for a company to manipulate the stock price. Since the financial forecast system itself has relative uncertainties, the companies will not take the full responsibility. But it has been a concern to redefine the relationship between financial forecast system and the protection of securities investors so that they may not be influenced by incorrect forecast. In addition, companies may not excuse themselves every time by blaming the unpredictability of the economic situation. This thesis aims to focus on the theoretical basis of the financial forecast system and to investigate the legal responsibilities of the compilers of the forecast information. Moreover, I will use recent cases to demonstrate the factors behind the inefficiency of the system and to discuss the related influence after the adjustment of the laws. The chapters of this thesis will be divided as follows: The first chapter focuses on the motive and the methodology of my research. The second chapter discusses the background and process of the making of the financial forecast system within Taiwan and to bring up problems during the discussion. In the third chapter, I look at practical cases that are to do with financial forecast and to investigate the legal aspects of the situation. For the fourth chapter, I discuss the legal responsibilities of the companies which issue the forecast information. In the fifth chapter, I focus on the legal responsibilities of the authorities who help to compile the forecast information. The sixth chapter is the conclusion.