A Study On The Corporate Governance Of Fenghua Hi-Tech Company From The Perspective Of Financial Restatement

Financial Financial report is the most direct and effective tool for users of external information to understand enterprises.Therefore,the quality of financial reporting is crucial.However,in recent years,financial restatement frequently occurs in the capital market,causing widespread concern.When an enterprise discovers and corrects the errors in the earlier financial report,the behavior of restating the financial report disclosed in the earlier period is financial restatement.The U.S.general audit office believes that financial restatement is the performance of low-quality accounting information,which is the result of defects in corporate governance mechanism and low efficiency of corporate governance[1].The characteristics of board of directors,salary incentive and equity structure in corporate governance may directly affect the occurrence of financial restatement.Therefore,it is necessary to study the influence mechanism of governance on financial restatement,which is conducive to the targeted improvement of corporate governance,so as to improve the financial restatement behavior of listed companies.This paper selects the case of fenghua high-tech to analyze.On April 28,2018,fenghua high-tech released the company's statement of error correction,admitting that there were accounting errors in the relevant accounting treatment of the company's previous financial statements.On August 7,2018,the company received the notice of filing an investigation from the CSRC for suspected violation of securities laws and regulations.Station based on high-tech case,this article first restatement of financial statements related to corporate governance,generalizes the research achievement on the basis of the theory of agency theory and asymmetric information,brief introduction and review the case events,probes into the motivation of elegance and high-tech false sales accounts receivable and the serious economic consequences,the restatement perspective through repeat events focus on the analysis of the board of directors and board of supervisors in corporate governance,ownership structure,internal control and external regulation,problems existing in the aspects such as auditing environment,and how these defects influence the occurrence of financial restatements,to perfect the corporate governance targeted measures are put forward in the end.Through the case study of fenghua high-tech,it is found that the defects of corporate governance will increase the possibility of financial restatement.Corporate governance has always been the focus of investors and regulators.As listed companies,they should improve their internal governance mechanism to avoid manipulation of earnings.At the same time,as regulators and social intermediary institutions should promote the sound financial restatement system,strengthen the supervision and disclosure of company information.Only by internal and external joint promotion and effective resolution of corporate governance defects can financial restatement behavior of listed companies be improved and capital market order be maintained.This paper analyzes and discusses the relationship between financial restatement and corporate governance through the combination of theory and case study,hoping to provide some solutions for improving corporate governance and reducing financial restatement.