| Annual financial report which is regularly listed company financial information is disclosed to the external through the stock exchange.It is able to provide relevant enterprise financial information for information users, and provide important basis for investors to make the right decision. Therefore, the relevant disclosure about the company’s annual financial report has been the key supervision object by the securities supervision and administration department. In recent years, there are a variety of problems of the annual financial report of listed companies, including supplement and correction of the annual financial report of the listed company which are disclosed, it makes people have many questions for the authenticity, accuracy and reliability of financial report, thus causes the listed company adverse economic consequences. Financial report of listed companies is disclosed the supplement and correction announcements phenomenon which is referred to as financial restatements,and the occurrence of financial restatements affect information users to make investment decisions on one hand, make the information users trust in the securities market information much lower; On the other hand, the listed company after financial restatements, its market value will have a certain degree of decline, it will bring huge losses to investors; Finally, the financial restatement also interfere with effective configuration of resources in capital markets function.In recent years,the financial statements of listed companies in our country which is because of the existence problem such as mostly false information,misleading information or omission of financial restatement which occurs frequently,therefore it has attracted the attention of academia and practice, and they are actively involved in the research of financial restatement, looking for measures to prevent and reduce financial restatements. To some extent, the occurrence of financial restatements is strongly associated with the company’s governance, which is found in the study of related articles, and the listed company’s internal control system is imperfect, and the governance structure is imperfect, so the listed company to provide information about the credibility will be greatly reduced. So by perfecting the relevant internal control of listed companies, it is including to take effective means to solve problems such as agency cost, moral hazard, adverse selection, and by some measures to make the governance structure of listed companies more standardized, more sound and perfect internal control mechanism, thus to ensure the quality of financial reportinformation disclosure. That is to say, establish a sound internal control, improve the quality of accounting information, reduce the financial restatement behavior.Based on the 2012-2014 a-share listed companies as samples, the main research is internal control quality of the listed company affect financial restatement, and further research on the different of equity concentration internal control quality affect the financial restatement and at the same time in the different of nature of the controlling shareholder, internal control quality is the influence of financial restatement is increased or reduced. Assumption of related theoretical research and empirical test, the results are the following: firstly, to improve and perfect the internal control mechanism can effectively reduce the possibility of financial restatement;Secondly, under the different of ownership concentration, centralized control of the company’s internal control is to financial restatement inhibitory effect more significant. Thirdly, in the different nature of the controlling shareholder,the different property nature of the internal control quality which is to financial restatement inhibition effect is not significant. According to the research conclusion, this paper put forward improvement suggestions which include improve the financial restatement norms and the internal control system, etc. |
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