Financial Restatements And Sustainable Earnings Management Of Listed Companies

In recent years, listed companies which published financial restatements frequently attracted the attention of all stakeholders. The results made by many scholars show that there are operation and management problems behind the financial restatement. And they proved that financial restatement is a means of earnings management. In this paper, we research that Whether listed companies continued to earnings management before the occurrence of financial restatements. Is there a relationship between them.Through this study, we hope to have a more in-depth understanding about the phenomenon of financial restatements of public companies. Firstly, we have a literature regression. Then propose our study hypothesis based theoretical analysis on the above. Next, select samples for descriptive statistics and regression analysis and drawn the results and the conclusions. Finally, list the study limitations, further research space and policy recommendations. In this paper, the study concludes that before the financial restatement, the authorities have been engaged in ongoing earnings management. When the space of earnings management disappears, there will be occurrence of financial restatements contrary to accounting standards.This innovative of this study is mainly reflected in the perspective that existence of sustainable earnings management before the occurrence of financial restatements, expanding research space; secondly, we research relationship of financial restatements and continuous earnings management, which complements the current emphasis on financial restatement research; finally, the research model can be the prediction model of the occurrence possibility of financial restatements.