Financial Restatement,Investor Trust And Investment Decision

Listed companies as the most effective way of resource allocation,information is one of the most important elements, the information released by the public interest entities determines the capital flows of investors and potential investors. Among them, the financial information is particularly important. On the capital market, investors mainly understand the asset status and operating conditions of listed companies through the disclosure of regular annual reports. However, since 1990s,financial restatements of listed companies showed a growing trend in the world capital market, financial restatements phenomenon is increasingly serious, and it is also becoming increasingly important to study the negative effects of restatements on capital markets. At present, the number of financial restatements of Chinese listed companies increase year by year, and the restatement content covers a wide range and has a great influence. Therefore, further study on the impact of financial restatements on investor decision-making is particularly important.This paper introduces trust variables in psychology, adopts experimental research methods, and investigates the change of the initial of the information users under the financial restatements behavior and the change of the investment decision of the information users by designing the basic information of the virtual company. The 80 have knowledge of accounting and finance and has certain investment experience of the staff as subjects, it can be divided into four groups, with different types of attribution and interpretation of content, participants were asked to answer questions after reading materials. Based on the general descriptive statistical analysis, combined with principal component analysis and one-way ANOVA, this paper examines the impact of restatements and restatements on investor decision making. The results show that both restatement attributions and restatement contents have significant effects on investor trust and investment decision making. Finally, based on the results of the experimental study, this paper puts forward some policy suggestions to improve the information disclosure of financial restatements of listed companies, especially the restatements attribution and restatements content, reduce the risk of financial restatements to investor trust.