Research Of Financial Restaements Impact On Listed Corporation Financing

The efficient market hypothesis is based on accounting information disclosure of highquality. Only when the information communication is true, complete and timely,participants could make the right decision accordingly. In recent years, the listedcompany’s financial restatement phenomenon is more and more serious all over the world,especially in our country, where all kinds of supplements and corrections to the annualreport announcement are in form of significant matters temporary announcement. Theworldwide scholars have focused on the phenomenon for the negative impact on themarket economy which financial restatement has caused. In order to promote the healthyand stable long-term development of market economy, it is necessary to study the effect oflisted company financial restatement, and some suggestions are proposed at the end of thepaper.Firstly, the paper introduces the present research situation both in the domestic andforeign academic circles. Secondly the related theories to the listed company financialrestatement issues, and analyzes the application of these theories on the question offinancial restatements. Thirdly the paper analyzes the current situation of our countrylisted company financial restatement problem. Finally the linear regression is used tostudy the financial restatements impact on corporate finance, and the research hypothesisin line with relevant conclusions. The main conclusions are as follows:(1) the financialrestatement can reduce the listed company’s total loans;(2) the financial restatement canincrease the listed company’s short-term loans;(3) the financial restatement can increasethe cost of the equity financing of listed companies. Finally, according to the results of thepaper, in view of the situation of the listed company financial restatement in our country,the paper puts forward some suggestions about how to standardize the behavior of thelisted company financial restatement, specific including: building a sound externalregulation system of financial restatement, strengthening the stakeholders of the listedcompany financial restatement behavior surveillance; Establishing and perfect the internalcontrol system of listed companies, strengthening the supervision of the board of directors of the listed company, and improving the professional quality of the listed companyinternal financial personnel.