A Study On The Impact Of Management Characteristics On Financial Restatement Under Different Equity Nature

Financial report is the major source of information for investors to know about the listed companies. True and reliable financial and accounting information is one of the most important conditions for good operation and development of the capital market. Accounting and other mistakes in financial reports will undermine the quality of accounting information and mislead investors to make wrong decisions. Financial restatement implies that the former financial report cannot provide adequate, reliable or timely information about the companies, and make investors feel suspicious about the honesty and ability of the management. Lots of empirical researches can certify that financial restatement can lead to serious negative market influence. However, financial restatements in our country increased in 1990 s, and still stay at a relatively high rate these days. This attracted many scholars at home and abroad to explore it.More existing literatures focus on the reasons, factors and economic consequences of financial restatements. This paper holds the view that the top management team(TMT) is the main makers and executors of various decisions in a company, and must play a key role in preparing and publishing financial reports. So this paper, using 2012-2014 A-share listed companies’ data as sample, choose gender, mean age, mean education level mean yearly wage and standard variation of education levels as variables and apply Logit analysis respectively to explore the influence of background characteristics of TMT on financial restatements in companies with different ownership property after reviewing and analyzing related literature and theories. This paper gets the following conclusions: First, when ownership property is not specified, mean education level, mean yearly wage and standard variation of TMT is negatively related with financial restatement. Second, back ground characteristics of TMT have different effect on restatements of companies with different ownership property, for instance, gender and age have different signs in the two regressions of the two samples, and education level and standard deviation of ages have different significance in the two regressions. This paper also provides the corresponding solutions and suggestions.