Research On Financial Restatement Of Listed Companies On GEM

Since the establishment of the GEM,it has been nearly 10 years.In recent years,financial information has often been misrepresented.From the perspective of financial restatement,some GEM listed companies have begun to use financial restatements to hide real financial information.Appropriate financial restatements may be true,and serious financial restatements are often associated with fraud,which causes investors to lose confidence and disrupt the normal order of the capital market.Based on the literature on financial restatements both at home and abroad,this paper chooses the financial restatement data of the GEM listed companies from 2014 to 2016 to analyze the financial restatement behaviors of China's GEM listed companies,and finds that the companies listed on the GEM listed companies have a high proportion of restatements.Involve a wide range,the form of disclosure is not standardized,the content disclosed is not easy to find and the reasons for disclosure are unclear.Then,through the selection of Jinya Technology as a representative company,the financial restatements of the company were further explored.Starting from the motivation,influencing factors,and economic consequences of the financial restatement,it was found that the company's financial restatement motives were mainly associated with Party capital occupation and earnings management.The failure of corporate governance mechanisms,the flaws in internal controls,and the lack of external audit supervision have given rise to the possibility of a large number of financial restatements.Only significant financial restatements of a significant nature and scope can cause significant market negative effects.Finally,it proposes specific recommendations for regulating the financial restatement behavior of listed companies on China's GEM.It mainly includes improving the financial restatement system,strengthening government supervision,improving the protection mechanism for small and medium-sized investors,improving the quality of external audit,and improving corporate governance mechanisms.The improvement of the corporate governance mechanism mainly involves increasing the participation of institutional investors,continuing to improve the independent director system,avoiding the chairman and general manager from the same person concurrently,and improving the supervisory role of the board of supervisors.