The Mystery Of Occurrence And Disappearance Of Financial Restatement Behavior In Orchid Kechuang

Through the analysis of the overall environment of listed companies and the status of financial restatement of each industry environment from 2014 to 2018,this paper finds that the phenomenon of financial restatement in China is relatively serious.The occurrence of financial restatement means that the credibility of financial report is destroyed,which is not only bad for the enterprise itself,but also bad for the operation of capital market.This time,it is of great significance to explore how to reduce the company's financial restatement.This paper takes Shanxi lanhua technology venture co.LTD as a case to analyze the causes and consequences of financial restatement and the reasons for the disappearance of financial restatement in the past two years."Because" is in the basic theory of financial restatement on find out the reasons for the financial restatement behavior,mainly includes two aspects: insurance card pressure and low cost."Fruit" refers to the economic consequences after the financial restatement: the negative impact on the main accounting data and profitability of the financial indicators;The company's share price plunged;The executive team became unstable."Disappearance" refers to the absence of any financial restatement by the company for nearly two years and the reasons for that.Firstly,all factors that may affect the behavior of financial restatement were analyzed and excluded one by one.Finally,two key factors that are conducive to the reduction of the behavior of financial restatement were found.Second,the company hired audit institutions to promote the role.According to the research results,the paper puts forward suggestions for the listed companies to reduce the financial restatement from the following three aspects: improving the shareholding structure,attaching importance to the party construction of the senior management team and strengthening the external audit supervision.