An Empirical Study On The Relationship Between Features Of The Board Of Directors And Financial Statements Of Chinese Listed Companies

Financial restatement has increased substantially Recently, It products an adverseeffect not only on the price of the company share but also on the capital allocation.How to reduce financial restatement? The research on the corporate governance is asimportant as on the external policy.A substantial stream of research has addressed the causes and consequences offinancial statement restatements. This paper researches the impact of the feature ofboard on the incidence of financial restatement. The features of board were classifiedas the size character of board, the independence character of board, the behaviorcharacter of board and the incentive character of board. The paper investigates theimpact of the four tapes on the incidence of financial restatement.The financial restatement system was implemented in2007in China, so I drawthe sample from the ShenZhen stock market’s database over the period of2008though2012. The empirical research method was adopted to research the relationship betweenfinancial restatements and the features of the board of directors in the part of empiricalresearch.The logistic regression model was taken to research the effects of the specificfeatures of the board of directors on the financial restatement. The results show that theproportion of independent directors and the former three directors reward ratio arenegative to the financial restatement significantly and the ratio of no paid directors andthe number of board meetings are significantly related to financial restatement.