A Study On The Effect Of Financial Restatement Of China's Listed Companies On Debt Financing

The financial statements of listed companies are one of the important channels through which stakeholders such as investors and creditors can obtain company information.However,by checking the temporary announcement of listed companies from 2011 to 2016,the phenomenon of publishing financial restatement reports has become increasingly fiercer,and more and more types of announcements have been issued by listed companies,such as corrections and supplements.On the one hand,the financial restatement announcement is a way to improve the quality of accounting information.On the other hand,it also reflects the defects of the quality of the accounting information of listed companies in the early period and affects the decision-making and interests of users of accounting information.According to principal-agent theory and signal theory,stakeholders need to make prudent choices for the financing decisions of listed companies in order to protect their interests when making decisions using accounting information,which will affect the acquisition and development of debt financing of listed companies.In corporate financing decisions,debt financing is one of the company's main financing methods.Therefore,this papaer will study the influence of financial restatement on debt financing of listed companies in many aspects.This paper selected non-financial A-share companies listed on the Shanghai and Shenzhen stock exchanges that have issued financial restatement reports for the period of 2011-2015 as research subjects,combined with the panel data of the selected matching sample,and applied multiple linear regression methods to study the effect of financial restatement by listed companies on the scale,cost,and structure of their debt financing.The study finds that the size of debt financing,debt financing costs,and debt financing structure of listed companies that have undergone financial restatement have been negatively affected,and companies with different property rights have been affected differently.And different types of financial restatement actions have different effects on the scale,cost,and structure of debt financing.Corrections of financial restatements and financial restatements involving core statements have a greater impact on the size and structure of debt financing.