Research On The Agency Costs Of Listing Corporation Financial Restatement

Financial restatement is the behavior that the listed company t released the data of theprevious year’ financial repor. As known as the world,the landmark events is Enronfraud.From now, the Financial restatement is knowned by more and more people. TheFinancial restatement is made by more and more company, the frequency of financialrestatement is becomed more and more often. The financial restatement is refer to not onlyThe competence of financial professionals,but also the management and operation abilityof agent. The main interest of research of this article is that how is management andoperation ability of executives when the listed company appears the financial restatementbehavior,that is the problem of agent cost. Providing recommendations and comments forshareholders that assessment the ability of manager.This article reviews the literature and the related theory of financial restatement andagency cost and financial restatements impact on agency cost on the basis of the analysis,and then put forward the hypothesis and model.,selects the data of listed companiesform2009to2011as samples, carring out analysis;the sixth chapter introduct the researchconclusion, countermeasures and suggestions and the limitations of research.The innovation points of this article: From the perspective of agency costs to study theeffect of financial restatement of enterprises; Measuring the agency cost in terms ofmanagement fee and asset utilization, researching the impact of financial restatement oflisted companies on agency costs, the results show:(1) the companies of financialrestatement operating rate have no significant impact, but have a significant negativeimpact on asset utilization, accounting for the influence of the financial restatement onagency cost;(2) the regression results show that there is negative correlation betweenfinancial restatement and agency costs.