Research On Financial Restatement Of Listed Companies In China

Due to the rapid development of China's capital market,the relevant regulatory authorities pay more and more attention to the healthy operation of the capital market,so the quality of information disclosure of listed companies in China puts forward higher requirements.Financial restatement is a system to correct the wrong,so the intention of the system is to reflect the financial information of listed companies.However in our current financial restatement situation,the amount involved is huge,and the overall financial reorganization of the company will still give the market a series of negative economic impact.In case of information asymmetry,the enterprise may adjust its profits through financial restatement to achieve the purpose of self-interest,so financial restatement is one way of earnings management.This behavior infringed the interests of investors,disrupting the healthy development of the market,resulting in the financial restatement system deviated from the beginning of the development of the original intention.It is very important to solve the problems existing in financial recapitalization and improve the quality of financial information disclosure in the background of deepening the reform of capital market in China.On the basis of the theory of financial restatement,this paper analyzes the current situation and existing problems of financial restatements of listed companies in China's A-share market from 2013 to 2015,and further analyzes the deep-seated reasons.This paper puts forward the normative countermeasures in order to control the occurrence of accounting errors from the root causes and reduce the occurrence of financial restatements,so as to improve the quality of financial information disclosure of listed companies and promote the capital market.Smooth operation in reform.The main conclusions of this paper are as follows:(1)The financial restatement behavior of listed companies has deviated from the original intention of the financial recapital system,and can not improve the quality of financial information.(2)The listed companies need to improve the quality of the internal financial staff,improve the company's internal control system and other aspects of strengthening governance in order to effectively avoid the occurrence of financial restatement.(3)In order to reduce the financial restatement occurretment,the company needs to improve the audit quality of third-party audit institutions and the financial restatement system.