The Study Of Listed Companies' Financial Restatements Institution In China

The term"financial restatements"refers to the behavior that listed companies restate their previously published financial reports when they discover and correct errors of prior periods. Many scholars point out that the occurrence of financial restatements has a negative effect on the capital market, which may result in capital loss and bring the listed companies a series of adverse economic consequences. As a representation of the listed firms'earnings manipulation, financial restatements mirror the weaknesses and low efficiency in corporate governance mechanism. In recent years, China's has a high percentage listed companies occurrence of financial restatements in, this phenomenon not only has a negative effect on capital market, but also has threaded the interests of investors.This paper consists of six chapters. They are as follows:The first chapter is the recount of financial restatements. Mainly introduces the background, the paper topic, the purpose and significance,the research methods and innovative points, etc;The second chapter is the theoretical basis of financial restatement. This chapter reviews the principal-agent theory, internal control theory, etc;The third chapter is the comparison of financial restatements between China and the United States. Review the United States and Chinese financial restatements'history of system;The fourth chapter is the state in China's listed companies'financial restatements;The fifth chapter is the internal and external reasons for financial restatements. Main research the internal motives and external reasons for listed companies in China to happen financial restatements;The sixth chapter is to improve our country's financial restatements system. This chapter is based on the research that listed above. Suggest the government improve the financial restatements. and explicitly pointed out: to improve business performance is to prevent the company restated financial manipulation as a fundamental means of profits, to strengthen internal management, accelerate market supervision, promote the construction and function of a sound market repeat manipulation of financial control is an effective move.