The Stock Market Reaction For Financial Restatement Of Our Country's Listed Companies

Along with the rapid development of Chinese Stock Market, there are more and more discussions on Financial Restatement Announcement. But there are few research about the relationship between Financial Statement Restatement and stock market reaction. This research aimed to discuss about the stock-return behavior before and after the issuance of Financial Statement Restatement in the short run. Also in this paper the author discussed how the quantitative information and qualitative characteristics of restatements contributes to the short-term abnormal returns.This paper's findings can help securities regulators to constitute policy,help companies to disseminate information and help investors to make sound judgement.In this paper the author firstly read a large number of domestics and foreign literature studies then put on assumptions, afterward the author use hand-collected data form between 2002-2006, filtrating with some standards and at last get 907 entries samples.This paper is divided into six chapters, and the third,fourth chapters are the main sections of the paper.This paper through the event study and use cumulative abnormal return(CAR),quantity information,founder-member,refer years,content to investigate the relationship between Financial Statement Restatement and stock market reaction, simultaneity introduce of control variables,and In three phases to study this issue at last elicit some conclusions.