Research On Financial Restatement Based On Corporate Governance

As one of the most important elements of the capital market, the quality of accounting information plays a vital role in the protection of the interests of investors and the allocation efficiency of resources. It can be said that whether the capital market can operate normally and effectively depends on the quality of accounting information disclosed by listed companies to a large extent. Financial report is the main carrier of accounting information and also an important way for investors to understand the financial and operating situation of listed companies. Therefore, the quality of financial report has been focused on. However, the phenomenon of financial restatements occurs frequently in both domestic and international capital markets since the 1990s. It means that there are errors and omissions in the previous financial report announced by listed companies and indicates that the quality of accounting information is not very ideal. What’s more, if the financial restatement is not caused by objective reasons, but intentionally caused by the listed companies, the financial restatements may relate to financial fraud.Corporate governance is a series of institutional arrangements related to corporate power, with the purpose of solving the agency problem and protecting the interests of the company’s stakeholders. Therefore, the occurrence of financial restatements has profound reasons at the corporate governance level. This article studies the influence factors of financial restatement from the perspective of corporate governance. Firstly, the paper does some review and combings on the research status both at home and abroad. Then, the article researches the relationship between financial restatements and corporate governance normatively and empirically. Result shows that ownership concentration and equity balance degree, institutional ownership quantity, board independence and two duties syncretism have a significant negative correlation with the financial restatements. While the nature of ownership, board size have a significant positive correlation with the financial restatements, and the proportion of tradable shares. Finally, on the basis of the research conclusion, the article puts forward some proposals to improve the corporate governance structure and the quality of accounting information disclosure combined with the actual situation in our country.