Relationshipbetween Characteristics Of Theboard Andfinancaial Restatement

Financial report is the important information resource for the enterprise investor and creditor to know about the financial condition and operating achievement, therefore, much attention has been paid to its relevance and reliability. Efficient and reliable account information’s quality is always seen as the key to insure the healthy and stable development of the stock market. Since information of the public company is opened, financial restatement occurred more and the phenomenon hurts the quality of the accountant information and affects the decision of the report user. It has become the focus problem for information user including investor, creditor, government supervisor, accountant theory and the practice. The company’s governance mechanism design and validity affects the accountant information announcement behavior to a big extent and its perfection extent will restrict the quality of the accountant information and board of directors, as the important organization and management core, has the ultimate responsibility for the operation of the company. This text tries to seek the reason for the public companies’financial restatement of our country so as to perfect the management of the company and improve the quality of the stock market accountant information.The text summarizes relative document of financial restatement and the board feature at home and abroad and uses it as the basis of the follow-up research; in the demonstration part, taking public companies on stock markets of Shanghai and Shenzhen that have financial restatement from2009to2011as study sample and making match analysis to them, univariate analysis,multivariate Logistic regressive analysis and robustness test are utilized to analyze the relationship between board feature and financial restatement and come to the conclusions:in board of the directors, the higher percentages of directors who have financial background, the less possibility of the financial restatement; public companies which have higher proportion of independent directors has less possibility to have financial restatement; companies with the union of chairman and general manager have higher possibility to have financial restatement; compared to the companies which have no financial restatement, companies which have financial restatement have lower shareholding ratio for the directors and lower proportion of directors who get paid. In the end, some practicable measures and advices are provided to improve the system of the board and reduce financial restatement on the base of the research conclusion and the practical condition of our country.