A Researchonexecutives Overconfidence And Listed Companies Earnings Restatement Behavior

Financial report as a manager and investors such as communication medium, external information users is not only listed company operation and management of information carrier, and is the foundation of the effective operation of capital market. Surplus restated as to perfect the financial information disclosure system of remedial measures, is no longer a simple accounting error correction, restatement found surplus behavior behind the relationship between the deep motivation of the investment environment of the validity and rationality of the allocation of resources.Different from previous scholars "completely rational economic man" hypothesis, this article obtains from the perspective of managers’ limited rational characteristic, put forward the initial motivation for non for profit managers influence on earnings restatement behavior, clear the cognitive biases produced by the managers overconfidence in surplus restatement process occurs in the conduction process. First analysis of the relationship between overconfidence and surplus restatement of behavioral finance theory, it is concluded that no false positives from the surplus behavior of private economic interests of managers exist obvious overconfidence psychological tendency. Overconfidence psychological cognitive deviation will make managers overestimate their own management ability and company’s development potential and the false alarm was found and the risk of loss given the smaller coefficient, when the company’s performance in landslide, for the realization of the expected release surplus level, to cater to investors’ expectations of the company’s performance, will use aggressive accounting treatment or revenue generated on the confirmation in advance of the motives of false profit statement, eventually lead to earnings restatement.Study found that overconfidence company and fraud in surplus the restatement of the way and purpose of false positives and surplus there are significant differences on sponsors, overconfidence sample firms in the case of performance gradually decline, the surplus of false alarm limit has been expanded, eventually led to the passive or active to disclose surplus for the year before. On this basis, using large sample data by using logistic regression analysis to verify, managers overconfidence psychological tendency leads to earnings restatement. In this psychological characteristics influence decision-making behavior eventually lead to report the results of the conduction path, the accuracy of earnings forecast, performance of landslide and investor sentiment plays an intermediary role. According to the research conclusion, on the basis of the restatement of the psychological characteristics of overconfidence to surplus behavior results transmission paths, respectively, from the initial motivation, conduction process, punishing three angles, targeted Suggestions, solve the restatement of overconfidence psychological deviation cause surplus phenomenon, for managers and regulators to provide theoretical basis and practical guidance.