A Study On The Spatial Distribution Of Financial Restatement Of Listed Companies

Financial restatement is a conduct that the listed company give an announcement about supplement, correct or supplement and correct to conduct early errors in the financial statements. With the rapid development of China’s capital market, the number of listed companies has a rapid growth, more and more financial restatements are occurring, these companies are from different industries and regions, as a direct result, investors suffer a loss, how we can make sure the health and orderly development of our capital markets has also been a severe challenge. Academics and regulators is extremely concerned about the frequent occurrence of financial restatements of listed companies in China.Be given a comprehensive combing about literature at home and abroad, we found that the current study on financial restatements is focused on the motivation, influencing factors, the economic consequences and the market reaction of financial restatement, hardly the research explore in terms of geographic location where listed companies may occur financial restatement? Financial geography especially emphasized the role of geographical factors, this paper studied listed companies’ financial restatements spatial distribution problems from the perspective of financial geography.This research about the paper is divided into six parts: The first part is an introduction about the main contents of this paper,including the research background, purpose and significance of the paper, methods and structures, as well as the final contribution; the second part is the related theory and literature review, the concept of financial restatements were defined, the relationship between the region and financial restatements were analyzed, and on the basis of combing the literature at home and abroad led to this article research Angle of view; the third part describes the overall situation of China’s listed company financial restatements; the fourth part has carried the empirical analysis the spatial distribution for China’s listed companies of financial restatements,and provides finance implications and policy recommendations of spatial distribution of financial restatements on the listed company. The fifth part is the conclusion. The empirical part mainly analyzes our country 2003-2014 Shanghai and Shenzhen stock exchange’s listed company as sample, using descriptive statistics, correlation Pearson inspection and Logistic regression method.The empirical study found that Chinese listed companies on the spatial distribution of financial restatements has the obvious characteristics, the probability of financial restatements at the eastern is less than the central and western regions, the farther the listed company headquarters from the nearest financial center distance, the higher the probability of financial restatements.