A Study On The Financial Restatements In Chinese Listed Companies

The trend of economic development of a country can be represented by the prosperity of capital market.In the capital market,the enterprise has a close relationship with the majority of investors.The financial statements of the company shall be used to describe the financial and non-financial information related to the company's operating conditions,investors and other information users to make investment decisions accordingly.Therefore,it is necessary to ensure the authenticity of the financial report.However,in recent years,the financial information distortion,the frequent occurrence of false,false financial information to the financial restatement form.Listed companies in the media related to the disclosure of the annual report of the media after the release of some of the three titles in the form of notice,such as supplementary announcement,correction notice and error correction announcement.The nature of the announcement is different,part of the nature is simply a change or supplement,there is a part of the nature is very serious,which will involve a huge change in profits and other indicators.Because of the lack of regulatory mechanisms and penalties,part of the enterprise will use the financial restatement of this means to achieve some clear purpose,for example,to meet the conditions of IPO or meet the conditions of bank loans.The proper financial restatement is the perfection of the financial report,and the serious financial restatement is the disaster of the capital market.Financial restatement brings loss of interest to investors,so that investors lose their confidence in investment,the stability of the capital market information is insufficient,the capital market will not operate properly.Because of the establishment of the financial restatement system in our country is late,the mechanism is not perfect,the regulation is not in place,there are many immature.In addition,there is little research on the issue of financial restatements in the case study,so there is a large space for research in this field.On the basis of mastering domestic and foreign documents about financial restatement,the direction and the focus of this research are confirmed.Firstly,define the concept of financial restatements of listed companies,discuss the institutional background of financial reporting restatements and study the related theoretical basis of the research.Secondly,select the date of listed companies in Shanghai and Shenzhen for the 2014-2016 to analyze the general information,the industry distribution and the form of disclosure.After that,discuss the financial restatement of JY company in depth,including the reason of financial restatement,the influence of stock price and management.Finally,provide suggestions on risk prevention of financial restatement of listed company,including the government strength policy guidance for enterprises,further standardize the governance structure of listed companies and improve the internal control system.These are all aiming to perfect the financial reporting restatement system of listed companies and the effective operation of capital market.