The Impact Of The GEM Listed Company’s Corporate Government On The Issue Of Annual Financial Statement Patch

The GEM market continues to grow since it opened board in2009, along with someprominent problems, particularly,the annual report patching problem. The annual report isthe most valuable resources for investors to comprehend the enterprise’s operating results andfinancial condition, especially for companies listed on GEM whose investing risk is verylarge, its reliability and relevance has been taken seriously.But, the releasing of the annualreport patch means the existence of omissions or errors in the early financial report. Andcorporate managers may use the annual report patch to delay adverse information, it is notonly reduced the quality of information disclosed in the annual report, but also influence theinvestment decisions of investors, causing economic losses.Foreign studies on financial restatement started early, both theoretical research andempirical analysis are quite mature, while the annual report patch as a form of financialrestatements with Chinese characteristics is seldom be studied, not to mention research on theannual report of the GEM market. This study focus on GEM-listed Companies which hasdistinct characteristics and high growth, systematically researching corporate governancehow to impact on the GEM companies to publishing annual reports patch from the twoangles of theoretical and Empirical Study.This article selects the GEM companies whichreleased annual report patch about2010,2011,2011annual report as research samples, andselects the corresponding matching samples,it uses the method of Binary Logistic regressionanalysis to research the GEM-listed companies’ corporate governance on its annual reportpatch for empirical research.The study found that the more concentrated the GEM company,the lower company’s information disclosure quality is, thus the annals patch phenomenon ismore serious. At the same time, the board scale and the GEM listed companies released patchis a negative correlation between the annual report. The study also showed that the two rolesof chairman and general manager of unity and GEM listed companies to publish annualreports patch is a positive correlation.Thus, the quality of accounting information on GEMand its corporate governance has a close relationship.In short, companies listed on GEM, compared with previous studies of main board listedcompany, have a lot of national policies unique,not only in the company’s own characteristics but also in operating mode. The research findings will help us to form a better understandingof the relationship between the annual GEM patch and its corporate governance, which canhelp us to find a breakthrough to improve the quality of financial information and theirquality of companies listed on GEM.