Empirical Research On The Relations Between Corporate Governance And Financial Restatement

With the improvement of information publication, more and more people become to focus on the quality of accounting information. Since the information disclosure institutions exucute, the amount of financial restatement is increasing year by year, it has done harm to the quality of accounting information and influenced the users'desicion. The users of accounting information including investors, creditors, government and academic world have begun to talk about the topic that how to prevent the significant errors. In the author's view, the defect of corporate governance is the root of significant errors and we counld improve the quality of accounting information only by perfecting corporate governance.Firstly,the author has reviewed large numbers of literatures about corporate governance and accounting information. In respect to ownership structure, the features of independent director, management stock-holding, auditing committee and independent auditing, the author narrate and comment on research methods, research design and conclusions.Secondly, the author analyze the effect of corporate governance on accounting information on two dimensions-internal governance and external governance. In this paper ,the author select research samples from ShangHai securities stock exchange and test six hypothesis on the relations between corporate governance and financial restatement. By statistics, the author draw the following conclusions:there is a remarkable negative relationship between tradable shares and financial restatement; there is a remarkable positive relationship between the concentration of share ownership and financial restatement; there is a remarkable negative relationship between the scale of accounting firm and financial restatement.This paper has provided not only some empirical evidence but also some constructive proposals for involving parties, especially supervisors, besides...