Corporate Governance,Earnings Quality And Financial Restatement

Financial reporting reflects the company's financial status,business results and cash flows.It is an important carrier of information disclosure for listed companies,and an important way for investors to understand investment decisions of listed companies,as well as an important basis for regulatory authorities to supervise listed companies.Therefore,the information quality of the financial report has been paid much attention.However,in recent years,the restatement of financial reports has become more and more intense at home and abroad.Financial fraud cases hide behind the financial restatements,causing investors to doubt the authenticity and reliability of financial statements,shaken investors' confidence,causing volatility in the capital market,resulting in a very negative impact on the healthy development of the capital market.The occurrence of the financial restatement has the cause of the corporate governance.This paper studies the impact of corporate governance on financial restatement,and innovatively adds earnings quality as an intermediary variable to study the impact mechanism of corporate governance on financial restatement.This paper makes a comprehensive application of theoretical research and empirical analysis.First of all,this paper reviews and combs the relevant literature on corporate governance,earnings quality and financial restatement at home and abroad,expounds the related theories and analyzes the influence mechanism of corporate governance on financial restatement,and then put forward the research hypothesis.Secondly,it uses the data of Shanghai and Shenzhen A-share main board listed companies from 2012 to 2016 to make empirical test.It constructs regression models to investigate the relationship between corporate governance,earnings quality and financial restatement.Results show that there is a significant negative correlation between corporate governance and financial restatement.The higher the level of corporate governance is,the less the possibility of the financial restatement.There is a significant positive correlation between corporate governance and earnings quality,and the higher the level of corporate governance is,the higher the quality of earnings.In addition,corporate governance changes the authenticity and reliability of the financial statements by changing the quality of the earnings,and then affects the possibility of the financial restatement.Finally,this paper puts forward some suggestions on the basis of the conclusions and explains the shortcomings and future prospects of this article.