The Study On Financial Restatements Of Chinese Listed Companies

Nowadays, with the rapid development of China’s capital market, the investors’ decisions have a closer relationship with the quality of information disclosure. The investors adjust their investment strategies by reading the financial reports of listed companies. Therefore, the quality of information disclosure has been concerned by the academic circles for along time. The information disclosure issues which have rarely been seen in China before begin to appear in Chinese capital market with the development of global economy, and one of them is Financial Statement Restatements. Supplementary correction instructions of profit account for more than half of all Financial Statement Restatements in Chinese listed companies, which reflects that the disclosure of current financial information lack of normalization and discretion, and some companies are in a way of supplement and amendment to gain the profit of capital market. Hence, studying on the problems of Financial Restatements in listed companies has meaning for improving the quality of accounting information disclosure and protecting the interests of investors.This paper carries out the research basing on the frame structure of rising issues and analyzing problems and solving the questions. Here’s the approach: statistical analyzing the features and development tendency of Financial Statement Restatements of Chinese listed companies. As for research methods this paper follows the ways of taking the investigation of reality of Financial Restatements in Chinese listed companies as research objects and basing on the normative research primarily, supplemented by case studies and table. To make the research technique becomes more divers and more comprehensive through deductive method and induction and comparison of the history and current condition.Following the above research thoughts, this paper is divided into five parts, the content of each part is shown below:Chapter one:Introduction. As the beginning part of this paper, chapter one elaborates the research background and purpose and research significance, reviews the framework and ideas and points out the innovation and deficiency of this thesis.Chapter Two:Theoretical Basis and Literature Review. Firstly, sum up the literature of financial restatement at home and abroad; focus on and briefly review the following three research areas:the motivation of financial restatement of listed companies, influence factors and economic consequences; secondly, review the Trust-Agency Theory, Asymmetric Information Theory and Stakeholders Theory.Chapter Three:The Investigation of reality of Financial Restatements of Listed Companies. The author collected the financial restatement of A-shares in main board of the listed companied from January1,2008to December31,2013. Analyzing the above information from the six aspects of the number, the type, the frequency, the business, the content and the influence of accounting earning.Chapter Four:The Problems and Cause Analysis of Financial Restatement of Chinese Listed Companies. On the basis of chapter three, this part summarizes the current problems of financial restatements from the two aspects of corporate governance and institutional improvement and sums up the reasons for the problems and finds out the essence of these phenomena.Chapter Five:The Countermeasures and Suggestions for Improving the Financial Restatements of Chinese Listed Companies. Based on the experience and lessons, the thesis provides the advices for improving the financial restatements of Chinese listed companies and the quality of financial information disclosure and reducing the investors’ loss by adopting the right measures.The attributions of the thesis are providing the empirical data for the research of financial statement restatements of Chinese listed companies by collecting the financial statement restatements of listed companies from January1,2008to December31,2013and theoretical and empirical supports for the supervision department.However, there are still limits and insufficiency of the paper. For one thing, because of lacking the standards of format and captions of financial statement restatements, the author cannot collect the complete information. For another thing, the paper may not give a deep analysis on the cases which are mentioned in the thesis, and the author doesn’t have the comprehensive expertise. These reasons contribute the result that the analysis angle is not reasonable and is far from enough.