The Empirical Research On Public Companies To Disclose Additional Corrections

With the development of Chinese securities market more than 20 years. Under the pressures of profits, the phenomenon that listed companies manipulating profit occurred frequently. Although the control measures have been intensified.In recently years, accounting errors restatement used frequently by listed companies as a manipulating way. The credibility of financial reports is making the deal look imperfect to shareholders with financial fraud appeared one after another. Although the Ministry of Finance revised the Accounting Principle including "Changes in accounting policies and estimates and correction of errors" extensively from 2001 to 2006, research pointing to the huge rise in the number of firms manipulating account reports in the past few years such as Yin GuangXia, Qiong MinYuan and KeLong event. There are more than 130 corporations correcting errors in 2007, making up 9% of capital market. Investors at a disadvantage because the contents of accounting information are asymmetric. It is difficult to distinguish the accounting information. Because investors judged listed companies performance evaluation based on accounting profit performance, in order to achieve the revenue targets or avoid delisting goals, manipulating the accounting profits has become a common means of managers. Therefore, author found it is necessary to study and discuss some behavioral issues that correcting accounting errors.In the article, firstly, we make a summary of literature about "Changes in accounting policies and estimates and correction of errors". In these article, scholars are discussing the purpose of publishing correction—earnings management, but only few views are agreed to incoming smoothing. So I think it is not only comprehensive analysis managers'aim, but also analysis the listed companies'characteristics uncarefully.So, in research, we analysised sample date of listed companies in recent five years. Firstly, we found:the number of listed companies correcting errors was appear to an ascendant trend from 2005 to 2007, and it got to summit in 2007. Secondly, the firms which disclosured announcements commonly in the market more than six years. These firms were familiar with information disclosure rules and detailed implementation rules for the public issuance of unlisted public corporations. We also surprising found that manufacturing enterprises had a large majority in listed firms, utilities sector had a minority, instead. May be the manufacturing industries are more closely to the public, so it is necessary to be cosmetic to push up the market value of statements. Lastly, according to the types of misstatement side, the sample distinguished revenue, investment income, evade taxation etc. Statistics found in our country income and charging of accounting errors were more common in overall samples, getting to 62.06%.Meanwhile, referencing the domestic scholar merits, we using "event study" to research listed companies'announcement. In the article, we corrected the dates which information of listed companies announced as the origin, and use before and after 5 days as a window period to analysis portfolio of listed firms gains extra return in the eleven days. Analysis can say as follows:firstly, the company's shares extra return maintained in positive, if it announced good news. We also surprising found that although the company announced bed news, they would be forgave if they announced news proactively. Oppositely, the public would be appeared to strong negative reactions, if the companies accounting statements in order to earnings management or commit with tax department punishment.The closely relationship between accounting restatements and capital market gains proves that actions were effectiveness. Clearing these problems, it will be in favor of investors analyzing situation and protecting their rights. Further, it will be promote the securities markets healthy development and perfect accounting statements in our country.