A Study On The Influence Of Background Characteristics Of Executive Team Of Listed Companies On Financial Restatement

A large number of studies show that, financial restatements will bring serious negative influence to the listing corporation, and even lead to bankruptcy, but the financial restatement behavior is not suppressed, from the 90’s of last century, the outbreak of financial restatement behavior of the listing corporation happened more frequently in the world within the scope of the outbreak. This caused the widespread concern of scholars home and abroad, the research also obtained many achievements, but most of them focus on the motive of financial restatement, influential factors and economic consequences. However, financial restatement is usually considered as a listing corporation executives choose radical accounting policy, top management team as a listing corporation, the core of human resource, plays a key role in entire firm in operation, no matter what is the cause of the occurrence of financial restatements, top management team has an unshirkable responsibility, therefore, the relationship of executive management team and listing corporation financial restatement is worth discussion.Namely from the overall point of view, the research on the executive team of former scholar’s main concern is the proportion of shareholding, team size, remuneration and other aspects, did not consider the team members of the population background, namely the executives all as homogeneous and ignore the heterogeneity between people. In 1984, Hambrick first introduced the upper echelon theory, this theory emphasizes the heterogeneity among top management team members, and points out that the population background characteristics of team members to replace the psychological characteristics of scientific research has made the tremendous contribution for the future research of top management team, this paper is in the upper echelon theory basis.This paper adopts the combination method of normative and empirical, select the members of the executive team age, tenure, gender, educational background, professional background, occupation through six aspects to represent the TMT background characteristics, with the domestic and international scholars combing the research hypothesis, the establishment of logistic regression model, take 1172 listing corporation in Shanghai and Shenzhen two city 2011-2013 A shares as sample (including financial restatement of 586 companies, the paired non financial restatement of 586 companies), use the regression analysis, obtains the correlation results and analysis and discussion.The research results show that:the average age of the team, the average tenure of executives, the average education and occupation through diversification and listing corporation financial restatement behavior significantly negatively correlated; significant positive correlation of top management team in the proportion of men with listing corporation financial restatement behavior; in the different nature of the listing corporation, the relationship between TMT background characteristics and financial restatement behavior a slight difference.Through the analysis of the conclusion of the study, draws the following suggestions. First, on China’s listing corporation financial restatement system:firstly, strengthen self-discipline and self behavior of listing corporation in China, to mobilize the active participation of listing corporation. Secondly, standardize the financial restatement announcements. Thirdly, strengthen the supervision of the relevant regulatory authorities in china. Fourthly, pay attention to our government audit. Get from the listing corporation executives background characteristics of Enlightenment: first, to value the older executives experienced executives age structure, optimization. Second, the rationalization of the executives of the term. Third, proper increase of women at the top executive team members in proportion. Fourth, improve the overall quality of top management team members. Fifth, the employment occupation experienced executives. Sixth, according to the listing corporation property executive type selection.Based on the listing corporation executives team background characteristics influence on financial restatement, we explore the relationship between the two, but also give some suggestions base on the relationship, hoping to provide some reference suggestions for the construction of system in our country, improving the quality of accounting information of listing corporation, reduce the occurrence of financial restatements, to ensure that China’s capital market’s operation more efficient.