A Study On The Relevance Between Corporate Governance And Financial Statement Restatements

In recent years, the phenomenon of financial statement restatements frequently arose in China's capital market, which has shaken the confidence of investors and resulted in the inefficiency of resource allocation. More seriously, it may be one of the means of earnings manipulation by the management of listed companies. The financial restatement announcements usually means that there are possible error or neglect in the originally annals, and it also reflects that the quality of accounting information is poor. Corporate governance is related with disclosure of accounting information, and it's perfect or not constrains the quality of accounting information. If it's perfect, the possibility of the financial restatement announcements will be reduced,and the quality of accounting information will be improved.Firstly, this paper has combed the relevant research about the financial statement restatements. And then using statistical methods based an analysis of the cause of financial statement restatements and its characteristics, current problems, and development trend. Finally, on the basis of theoretical analysis, the paper indentified the relevance between corporate governance and financial statement restatements from the ownership structure, feature of the board of directors and independent audit. According the results of this research, the writer put forward some advices to improve the corporate governance and the system of financial statement restatements, and provide evidence for the administrations to strengthen its supervision.