Companies listed on China's Shenzhen Stock Exchange Small and Medium Enterprise
Board are required to release preliminary performance reports before the end of February if
they cannot file annual reports by that time. Although this mandate might improve the
timeliness of information, we find that such preliminary releases are inaccurate and
optimistic, potentially misleading investors. Sixteen percent of preliminary reports contain
significant inaccuracies (ie, when actual numbers deviate from preliminary ones by at least …