The Study On Financial Restatements Of Listed Companies’in China

The high quality of accounting information is the cornerstone of the capital market. As the main carrier to disclose accounting information of listed companies, financial report has become an important way for stakeholders access to company information. The financial restatement is the restatement of financial statements of listed companies, although its original intention is to ensure the reliability of the company’s financial information, but the financial restatement itself show that the restatement company’s preliminary financial report have errors, people will suspected the quality of company information disclosure. Since the1990s, the financial restatement have happened frequently in the world, especially in recent years, the financial restatement behavior of listed companies in China is intensified, caused a severe challenge to the efficient operation of the capital market and the effective protection of investors.Through all aspects of analysis and appraisal, scholars get a lot of achievements. Many scholars have come to the unanimous conclusion is that there is a close relationship between the quality of corporate governance and financial information disclosure, however, Most scholars are confined to the internal governance characteristics, due to China’s transition special government-enterprise relations as well as economic system environment and more factors, corporate governance, external environment has a very profound impact on the same financial restatement. This article intends to start by the level of the legal system of the listed company’s location, the industry in which the degree of competition, the actual control human nature, the type of whom to restated, the size and the term of the external audit, to study the relationship between the financial restatement and the the Company’s external governance factors, in order to improve the environmental of the external governance of listed companies in China.