The Empirical Study About The Financial Restatement And Bank Loan Contracting

As an important way of disclosure information, the financial report of listed companies is an important way for investors to understand an enterprise’s financial position, operating results and cash flow. Effective information disclosure will help ease the information asymmetry between the capital market participants and promote the effective allocation of resources. However, more and more financial restatements interfere the accounting information demanders’reading and understanding of financial reporting, constitute serious challenge to the effective disclosure of accounting information. The existing research literature suggests that financial restatement cause serious consequences to the securities, investors and enterprises, lead to the huge market value losses, fall down investors’confidence and rise cost of capital. In this paper, by adopting the combination of normative research and empirical research method, we takes the2009-2012financial restatements reports of a share companies listed in Shanghai and Shenzhen Securities Exchange as study samples. This paper is made on the basis of generalizing relevant literature, analysis of the theory of economics and behavioral science. Combined with listed company financial restatement, debt financing and other institutional environment, we use logistic regression and linear regression model to the impact of financial restatements on listed companies refinancing debt. The main conclusions are:(1) the bank loan spread rates will rise after financial restatements, bank loan size will reduce, bank loan security will be tougher, while the maturity of loan is not significant difference before and after financial restatements.(2) Further, this paper distinguish the restatement enterprises’property, the institutional environment to study the influences of financial restatement to the debt contract, the results show that the financial restatement can increase the loan spread and security of state-owned and non-state-owned listed companies, while there were no significant differences for the state-owned listed companies’loan size before and after financial restatements, non-state-owned listed companies’loan size significantly reduced after financial restatements. The loan spread of the listed companies in all regions increased after restating financial report, and compared with listed companies in the region of institutional environment, the size of bank loans will reduce and loan security will be stricter after financial restatement for listed companies in the region of poor institutional environment.