Incidence Of Adjusting Accounting Errors Of The Listed Companies

The accounting law doesn't restrict strictly when to adjust the accounting error, so it is always be considered when the accounting errors are funded out. Thus, many listed companies usually don't adjust errors in time, or adjust them when they need. This behavior of listed companies acts against the timely and objectivity of financial report, which makes report users do wrong choices by the false message. If the phenomenon doesn't be prevented, the order of securities business will be interfered badly. Therefore, this thesis will study the Incidence of adjustment by empirical research.Based on the present study about accounting errors, the law and theory about accounting errors were generalized firstly, then the actuality of adjusting accounting errors of the listed companies in China was analyzed and the phenomena that the listed companies don't adjust accounting errors in time was disclosed. Then it concluded that it was very essential to study how to spur the listed companies adjust errors in time. Then the listed companies having the corrections of accounting errors in the period from 1999 to 2004 were collected as research sample. Then the incidence which spurred the listed companies adjust errors in time was testified by methods of mean value test and multivariate linear regression. The major empirical results are summarized below: the inspection of The China Securities Regulatory Commission, other supervision outside and income quality correlated positively with it. The effect on profits correlated negatively with it. The hypothesis of the CPA firm change and assets-liabilities ratio didn't correlate with it. At last, this paper puts forward several suggestions based on the analysis of the actuality and the empirical research.