An Research On The Influential Factors Of Financial Restatement Based On The Perspective Of Corporation Governance

Recently years,a large quantity of financial scandal have occurred in the listed companies,both the domestic and foreign capital markets,which could do damage to the company values and interests of investors.At the same time,this phenomenon is also shaken investors’confidence in the quality of accounting information,therefore information disclosure of listed companies has become a focus in the areas of company’s financial research.Financial restatements is a kind of action taken by the listed companies to supplement or revise previously published financial statements,of course the previous statements usually exist error or misleading information. As an important part of information disclosed by the listed company,financial restatement indicates that financial information previously disclosed is unreliable or even wrong. Therefore, frequent financial restatement will affect the reliability of financial reporting and reduce the quality of accounting information.This phenomenon also became the focus of government regulators and the managements.Based on the above analysis, the study of financial restatement has important theoretical and practical significance.This paper will research on the association between governance characteristics and the likelihood of financial statement restatements,based on the manufacturing industry listed on the main board of shanghai and shenzhen stock market.The results show that board chairman and CEO syncretic,the ownership concentration degree,the establishment of the audit committee, the audit opinion and the accounting firms reputation will significantly affect the probability of financial restatements.In view of establishment of the chairman and general manager,the listed company is easier to financial restatement if it is two-duty syncretic.The degree of ownership concentration affect financial restatements, the probability of restatements will be smaller if the company has high concentration of stock.In the aspect of audit supervision, the listing companies are less likely to financial restatements, if the company has established an audit committee,be audited by an accounting firm with good reputation,and standard audit opinion.The relationship between the proportion of independent directors and financial restatement is negative correlation, but the results are not significant. At present,the establishment of the independent director does not play a positive role in prevention for financial restatement,it’s operation efficiency needs to be improved.Based on above analysis,the improvement of listed corporate governance is good for improving accounting information quality, lowering the likelihood of financial restatements. Thence, listed companies should improve the efficiency of corporate governance, gradually increase the proportion of independent directors on the board, and ensure the efficient functioning of the board of directors.At the same time,listed companies should set up the audit committee,pay more attention to its independence, and strengthen the supervision of the external governance mechanisms, such as the external auditor.