Study On The Relationship Between Characteristics And Correction Notice Of Annual Report

Annual financial report is the most important information sources for external investors tounderstand enterprise financial position and operating results，therefore, whose relevance andreliability is concerned. Annual report patch as supplement or correction of the financial reports,the purpose is to let investors and creditors and other users of information to obtain morereliable and relevant information. However,in recent years, annual report patch,especially thecorrection notice ‘s frequent release, explain there are more and more omission or error in thedisclosure aspects,more serious,perhaps,has become a means of earning management, whichundoubtedly reduces the quality of accounting information and impact on investor decisionmaking, resulting in negative market reactions, and contrary to the original intention to publishannual reports patch. corporate governance mechanisms’ design and effectiveness have greatlyinfluence the accounting information of listed companies,it’s perfect or not restricts the qualityof accounting information,the Board as the core of corporate governance,the importantorganization,has ultimately responsible for corporate’s operation,so if it’s perfect, can reduceannual report patch, improve the quality of accounting information.Correction notice is a manifestaion of annual report patch,while the annual report patch is inthe form of financial restatement with chinese characteristics.The domestic have little studyon annual report patch especially correction notice,so learn from abroad study of financialrestatements and domestic study of annual report patch, from the perspective of empiricalresearch study the relationship between board characteristics and correction notice of annualreport.First, reviewed abroad study of financial restatements and domestic study of annualreport patch to follow-up research base;second, overviewed board characteristics andcorrection notice of annual report, and theoretical analysis and put forward the hypothesis;third,based on the data from2008to2010of chinese listed companies in Shenzhen A share market,select the matching company,construction of logistic model from seven aspects of annualreport conduct empirical study:the size, the proportion of independent directors, the leadershipstructure, the establishment of the audit committee, the annual number of meetings, theproportion of receive directors have not remuneration, shareholding proportion of boardmembers, the results show:the size and correction notice exist a little of positive correlation,the proportion of independent directors,the establishment of the audit committee,correctionnotice have significant negative correlation, the leadership structure, the annual number ofmeetings,the proportion of receive directors have not remuneration and notice have significant positive correlation, shareholding proportion of board members and correction notice exist alittle of negative correlation;Last,base on empirical research,we should be perfects directorssystem, recommendations to improve the disclosure of accounting information quality.