Empirical Study On The Influence Of Corporate Governance And Internal Control On The Financial Restatement

Corporate governance structure,as a kind of supervision and checks and balances,affect the enterprise internal control,and internal control within a certain range and influence of corporate governance,the two promote each other,common development,to the enterprise financial report information quality has important influence.As restatements of the previous financial statement,the financial statement restatements indicate the low quality of previous financial statement information,therefore,there exsit some relationship in the internal control,corporate governance and financial statement restatements.Based on the 2013-2015 annual report of all a-share listed companies as the research object,after excluding financial companies,have been delisted or into three board market trading company and the information is not complete,the data are unable to get the company,this article finally won the 445 financial restatement companies and 445 matched companies,in order to investigate the internal control,corporate governance and the relationship between the financial restatements.Research finds that the higher the quality of the internal control,the lower occurrence rate of financial statement restat ement;through importing relevant corporate governance variables and interactive variables of corporate governance and internal control in the model respectively,the result shows that good corporate governance structure can not only directly inhibits the occurrence of financial statement restatements,but also indirectly inhibits the occurrence of financial statement restatements by improving the overall quality of internal control,the utility of internal control inhibiting financial statement restatement gets strengthened in its' function.Therefore,this paper puts forward some corresponding policy recommendations from the company internal level,external supervision level,in order to provide certain reference for the improvement of the enterprise internal control and corporate governance structure in our country,strengthenment of the external supervision and regulations about information disclosure.