Research On The Impact Of Ownership Structure And Board Characteristics On Financial Restatement

Following the rapid development of economy of our country, the gradual maturity of capital market and the further perfection of supervision system of capital market, the requirement on quality of accounting information disclosure is higher and higher.Financial report of listed company is the uppermost and most important mode of information disclosure. It naturally undertakes the important mission.However, in the latest years, listed companies of our country often restate financial report, namely releasing annual report supplement and rectification report related to accounting errors. The appearance of the phenomenon and increase of it indicates that previous financial reports had some errors or defects. It means some problems existed in the process of company management. Aiming at the realistic situation of capital market,this paper makes theoretical analysis and empirical research on financial report restatement of listed companies and its economic consequence. The purpose is to find the relationship between financial report restatement and equity structure & features of board of directors in company management.This paper firstly lists and reviews the current domestic and foreign research situation of financial restatement, then starts from the system background of financial restatement, combines the basic principle of company management and financial information disclosure and makes normalized research on financial restatement and company management. We selected equity structure and features of board of directors in company management as key points of research for solving the following problems:First. Whether equity structure(such as concentration ratio of equity and shareholding proportion of management layer) has prominent relation with financial report restatement. Second. Whether features of board of directors(such as scale of board of directors and frequency of meeting of board) can influence the appearance of financial report restatement of listed companies.We selected the data in financial report of listed companies during 2012-2014 and made empirical analysis on the relationship between financial restatement and equity structure & features of board of directors. Descriptive statistics, correlation analysis and regression model were used to empirically test the relationship between financial restatement and equity structure & features of board of directors. Through empirical test,we find that: equity structure and features of board of directors can really influencefinancial restatement of listed companies; in addition, scale of board and frequency of board meetings have positive correlation with financial restatement; while concentration ratio of equity right has negative correlation with financial restatement. Shareholding proportion of management layer has U-shape relation with financial report restatement.This paper researches the influence of equity structure and features of board on financial restatement of listed companies of our country. In one aspect, the probability of appearance of financial restatement can be lowered through improving equity structure and optimizing structure of board, which has significant practical significance. In another aspect, it can offer references for supervision department and investors to make decisions.