Research On Beijing Listed Companies’ Financial Restatements

The financial report is an important means for investors to obtain companyinformation. In recent years, there has always been a problem of the false ofaccounting. Financial restatement is supposed to be modified and provide the morefinancial information to protect investors, but the company could reach self-servingpurpose through the financial restatement. Many domestic and foreign cases offinancial restatement have obvious earnings management motivation, it not only hasthreaded the interests of investors, but also has a negative effect on capital market. Itis a urgent task to research and supervision on the financial restatement. Beijing as thecenter of the economic development has a lot of listed companies which has a biggerproportion on financial restatement. Research on the financial restatement of Beijinglisted companies has the regional representative.The paper consists of six chapters. The first chapter is recount of financialrestatements. Mainly introduces the background, significance, the research methodsand innovative points. The second chapter introduces the present domestic and foreignresearch condition and the theoretical basis of financial restatement. The third chapterinterviews the United States and Chinese financial restatements’ history. The fourthchapter analyses the state of the financial restatement including frequency distribution,annual distribution, type distribution, industry distribution and the situation ofreworked financial reports, with the Beijing’s A-share listed companies in2008~2011as research objects. The fifth chapter searches the influence factors of the financialrestatement including the company features, equity structure, internal managementand external management, with the Beijing’s A-share listed companies in2008~2010as research objects. The sixth chapter is to improve our country’s financialrestatements which is based on the research the listed above including perfect mergerand acquisition mechanism of the listed companies，perfect exit mechanism of thelisted companies，unified financial disclosure format, make illegal restated financialpenalties and improve the internal management.The paper researches on the problem of the financial restatement with theBeijing’s A-share listed companies through empirical research. It finds some problemsabout the financial restatement. Finally, the paper put forward proposals to effectively avoidthese problems.The innovative points are examining the influence on the related transactions andmerger and acquisition. It is found that the merger and acquisition affect on financialrestatement. Finally, the paper suggests to perfect merger and acquisition mechanism ofthe listed companies.The practical significance is searching prior identification and treatmentmeasures after the event on financial restatement and help investors to make the rightdecision. The theoretical significance is perfecting Accounting Standards for BusinessEnterprises and improving the internal management.