Executive Heterogeneity,Institutional Investor Shareholdings And Listed Company Financial Restatement

Financial reports are an important carrier for investors to obtain investment information,but financial restatements have become more frequent in recent years.This not only represents the poor quality of financial information disclosure of listed companies,but also reflects the problems of listed companies in terms of corporate governance.The occurrence of financial restatement may be caused by the improper accounting treatment and inappropriate use of accounting policies by the listed company in the previous period,or it may be derived from the executive team's use of financial restatement as a means to obtain earnings to whitewash finances in order to obtain their own benefits.Purpose of the report.Scholars have conducted various researches on the factors that influence the occurrence of financial restatement behaviors,but even there are different conclusions on the study of the same influencing factors.The reason may be that scholars treat executives as homogeneous and ignore the interior of the executive team.The impact of compositional differences on financial restatements.The senior management team is the key decision-making body of the financial restatement behavior of listed companies,and different senior management teams have differences in the mastery of national accounting policies and risk appetite,which affects the quality of accounting information disclosure.Therefore,from the perspective of researching executive heterogeneity,this article explores the relationship between executive heterogeneity and financial restatement from the four dimensions of executive gender,age,education,and tenure.On this basis,unlike most of the direct research on the relationship between the heterogeneity of background characteristics of executives and financial restatement,this paper adds the institutional investor's shareholding ratio as a moderating variable.Investigate whether institutional investors can play a strong role in external oversight,whether it can play a regulating effect in the relationship between executive heterogeneity and financial restatement,reduce the occurrence of financial restatement,and promote better corporate governance,thereby making the research more has practical significance.First,this article reviews the financial restatement from the perspective of its company characteristics,motivations,and consequences.It sorts out relevant literature on executive heterogeneity from the perspective of composition and relational methods.Restate the relationship,make a literature review of the institutional investor's shareholding ratio and its regulatory effect,and make relevant literature reviews based on this.Then based on the principal-agent theory,high-level echelon theory,stakeholder theory,and similar attraction theory,the relationship between executive heterogeneity and financial restatement is analyzed,and hypotheses are proposed.After clearing the theory,this paper selects Shenzhen A-share listed companies as the research object,taking 2014 to 2019 as the sample observation interval,and chooses a logistic regression model to test the heterogeneity of senior executives(gender,age,education and tenure)On the impact of financial restatement,a moderating variable is added on this basis to test the role of institutional investor shareholdings in the relationship between executive heterogeneity and financial restatement.Finally,based on the research conclusions reached in this article,policy recommendations are made from three perspectives:establishing and improving the financial restatement system of listed companies,attaching importance to executive selection,and encouraging institutional investors to participate in corporate governance.There are four main empirical results in this paper:(1)The heterogeneity of tenure of executives is significantly positively related to financial restatement,which shows that the greater the difference in the tenure of the members of the executive team,the greater the probability of financial restatement of the listed company where the executive team is located;(2)After joining the adjustment variable of the proportion of institutional investors,the gender heterogeneity of executives The financial restatement is significantly positively correlated,indicating that after eliminating the institutional mediation role of institutional investors,the greater the gender difference within the executive team,the more likely it is that listed companies will undergo financial restatement;(3)In terms of moderating effects,institutional investors The higher the shareholding ratio,the weaker the positive correlation between the gender heterogeneity of executives and financial restatement;(4)The higher the shareholding ratio of institutional investors,the weaker the executive term heterogeneity and financial restatement.The positive correlation between the statements serves as a negative adjustment and inhibits the occurrence of financial restatements.