Research On The Relationship Between Media Report And Accounting Restatement

Financial reports are the bridge between listed companies and investors,but in recent years more and more companies issued accounting restatement announcement in order to correct or supply the previous financial reports,which seriously affect the quality of accounting information.In this information age,as being external supervision,media report improve the transparency of financial information and increase the cost to manipulate accounting information.So media report may reduce accounting restatements.Since financial misallocation has been a common phenomenon,many companies' profits are not well.Thus will compel managers to fabricate false financial information.Finally,it may weaken the inhibitory effect of media reports towards accounting restatements.Based on the overview of research background,purpose and significance,it collects the relevant literature about media reports,financial misallocation and accounting restatements.Depending on the principal-agent theory,asymmetric information theory,entrepreneur reputation mechanism,resource allocation efficiency theory and ownership discrimination,it proposes hypotheses and establishes models.Then it selects listed companies which had announced accounting restatement in 2011-2013 as sample,then choose other listed companies in the same industry which had not announced accounting restatement in these three years.It analyses the relationship between media report and financial misallocation towards accounting restatements.Ultimately,based on the view of financial misallocation,it analyses the influence of media reports to accounting restatements.The research results shows that media reports will inhibit the occurrence of accountingrestatements,and financial misallocation will increase the emergence of accounting restatements,and based on the view of financial misallocation,it will weaken the inhibitory effect of media reports towards accounting restatements,Finally on the basis of the conclusion,it proposes some suggestions,such as to pay more attention to the media reports and to provide them more research space,to establish companies' managers competitive selection mechanism and to increase the cost of illegal manipulation about accounting information,to set standard in order to regulate the media workers' behavior and to strengthen the authenticity of the report content,and to reduce ownership discrimination and to establish a fair and reasonable assessment procedures and so on.