Research On Financial Restatement Of Listed Companies Based On Earnings Management

In recent years, the phenomenon of corporate financial restatements are becoming more frequent and intensified, the number of financial restatement of the listing Corporation and the proportion are rising year by year. The financial restatement is increasingly widespread concerned by regulatory authorities and academia. The financial restatement,which is listed companies in the form of a provisional announcement of the annual report, semi-annual, quarterly or even monthly reports to make corrections or supplementary, usually indicates that companies have previously released errors or omissions statements. A large number of domestic and foreign financial restatement played misleading investors and capital markets. All the time, the financial restatement as a representative of the corporate earnings manipulation, its occurrence reflects defect governance mechanisms and the low efficiency governance of listed company.Investors’legitimate interests have been infringed and threats, also make investors always skeptical about the information disclosure of listed companies and even entire securities market lost confidence, so the quality of information disclosure, and to protect the legitimate interests of the investors, are the key to the maintenance of the good order of the securities market. More important is the manipulation occurred means that listed companies accounting system is weak, there may be the board of directors or the management of the financial restatement; the same time, to some extent, that management is trying to whitewash report to cover up the fact that revenue decline. It shows that financial restatements and earnings management motivation are closely interrelated.The financial restatements behavior research has important theoretical and practical significance on the perspective of earnings management. For the regulatory authorities to strengthen the supervision of listed companies’ financial restatement behavior, precaution listed companies to manipulate earnings. Necessary for earnings management as the research angle of view, combined with the current situation of China’s capital market, expounded the theory of earnings management and financial restatements based on a qualitative analysis of the listed company’s financial restatement of earnings management behavior, and through the combination of empirical research and normative research methods, analysis options and operating conditions of the financial restatement enterprises, establish Logistic decision model, the relationship between accruals and non-recurring profit and loss information and financial restatements, ultimately make relevant recommendations to specification China’s listed companies financial restatement behavior.