Internal Governance Structure Of Listed Companies On The Behavior Of Financial Restatements

The so-called financial restatement, refers to the company in the accountingstatements, again for the supplement and adjustment of accounting behavior. In recentyears, financial restatement behavior gradually by regulators and stakeholder concerns.Financial restatement of listed companies on the prior to the release of the annual orsemi-annual report accounting information to supplement or correct, under normalcircumstances, this kind of behavior that prior to the release of the error or omission ofaccounting information, but also possible by this behavior, produce shareholders earningsmanipulation condition, serious damage to the interests of investors, affect the company'sperformance trend, which damage the company reputation.This paper defines the financial restatement behavior is a kind of low accountinginformation quality performance, through the study of the ownership structure, boardcharacteristics, the board of supervisors, audit independence under the joint action ofgovernance structure, study of corporate governance on financial restatement of financialrestatement influences. The results show that the ownership concentration degree is low,the financial restatement of the probability is significantly higher than that of highconcentration of company stock; managers shareholding proportion is higher, the listedcompany's financial restatement probability is high; the scale of board of directors andfinancial restatements probability is positively correlated; the proportion of independentdirectors in higher financial restatement, occurrence probability is small; the board ofsupervisors greater scale, financial restatements occurrence probability may be smaller; theboard of supervisors meeting frequency is high, while the smaller the probability offinancial restatement; company internal audit independence is high, while the smallerpossibility of financial restatements. The research results show, good corporate governancestructure can reduce the risk of financial restatement, Therefore, recommendations fromthe listed company audit independence and professional competence, improve the qualityof independent directors in board of directors and the proportion of the improvement andoptimization of equity ownership structure and improve corporate internal governancestructure, reduce the probability of financial restatement, thereby improving the quality ofaccounting information, protecting the stakeholders' rights and interests.