Senior Management Incentive、Media Function And Financial Restatement

Financial reports as investors to understand an enterprise’s financial position andoperating results of the most important channels of information, its authenticity andreliability has been praised by the attention of investors. However, in the past tenyears at home and abroad, the listed company frequent emergence of financialrestatement phenomenon, cause investors to accounting information authenticity ofdoubt, even moved the global investor confidence.Based on the above background, this article selects2009-2011in China’sa-share listed companies as the research object, investigates the executive incentiveeffect on the financial restatement, and on this basis to further examine the executiveincentive in different medium environment changes of the impact of financialrestatement, which extends the research point of view of financial restatement. Theenlightenment: the media supervision as an external governance mechanism, in toprotect investors rights and interests, regulate the management and promoteeconomic growth plays a very important role.This paper on China’s a-share listed companies in2009-2011, occurrence offinancial restatements are classified descriptive statistics, and then explains the mainvariables of descriptive statistics, Pearson correlation coefficient analysis was carriedon, and finally using binary logistic regression model to empirical test samples andfound that the executive compensation of listed company and financial restatementpresent negative correlation, the listed company’s salary system, as one of theimportant aspects of corporate governance, seriously fulfill their duties to motivateexecutives, to improve the quality of accounting information plays an effective role;But in different medium environment, executive pay and the correlation of financialrestatement level changed.Finally concluded revelation: as one of the company’s external governancemechanism, media supervision in the protection of investors, improve the system ofcorporate governance and improve the quality of economic growth has played animportant role.