Research On The Influence Of The Characteristics Of Listed Companies Supervisory Board On Financial Restatement

Financial restatement refers to the company's rectification and restatement of errors in the previous financial report.Financial restatement to a certain extent reflects the defects and problems in the corporate governance mechanism.The board of supervisors is an important part of the internal governance mechanism of listed companies and is the company's internal supervision agency.It is responsible for supervising the company's financial accounting information.Therefore,this paper deeply studies the influence of the supervisory board characteristics of listed companies on the financial restatement.This article first summarizes relevant domestic and foreign literatures,and sorts out the impact of financial restatements on the financial restatements,including the motivation,economic consequences,company characteristics,and corporate governance.Second,from the concept of connotation of the financial restatements and the board of supervisors were explained.Third,based on the five theories of principal-agent theory,information asymmetry theory,decentralized power balance theory,high-level echelon theory,and corporate governance theory,the impact of various characteristics of the board of supervisors on financial restatements was analyzed.This article starts with the characteristics of the board of supervisors of listed companies,analyzes their impact on financial restatement,and puts forward seven assumptions: the higher the degree of supervisors,the less likely the company to restate financial statements;the larger the size of the board of supervisors,the less likely the company will become financial The older the supervisors,the less likely the company to restate the financial statements.The more meetings of the board of supervisors,the less likely it is for the company to restate the financial statements.The higher the shareholding ratio of the supervisors,the less likely it is for the company to restate financial statements;the proportion of external supervisors The larger the company is,the less likely it is for financial restatements to occur;the greater the proportion of supervisors in the financial context,the less likely the company will be to restate financial statements.This article selects company information that has been financially recapitulated from the website and obtains data on the control variables of the company's board of supervisors' various characteristics,company size,state-owned shares,and other control variables from websites such as the Guotai'an database.The A-share listed companies in Shanghai and Shenzhen Stock Exchanges are the subjects of the study and empirically study the impact of the characteristics of the board of supervisors of the listed company on the financial restatement by constructing a binary Logistic regression model.The study found that the larger the board of supervisors,the less likely the company to restate financial statements and that it is consistent with the assumptions.The more meetings of the board of supervisors,the more likely the company to have financial restatements,which is inconsistent with the assumptions.The higher the ratio of members of the board of supervisors,the better the company is.It is prone to financial restatements,which are consistent with the assumptions.The higher the proportion of supervisors in the financial context,the less likely the company to undergo financial restatement is consistent with the assumptions.The higher the age of members of the board of supervisors,the less likely the company to restate financial statements,consistent with the assumptions;The higher the qualifications of the members of the board of supervisors,the less likely the company to undergo financial restatement,consistent with the assumptions;the ratio of external supervisors has a negative effect on the company's financial restatement,but it is not significant.Based on the above research conclusions,in order to improve the mechanism of China's board of supervisors and enhance supervision of the board of supervisors,this paper puts forward the following suggestions: appropriately expand the scale of the board of supervisors,and take into consideration the qualifications of education,professional and management in the selection of members of the board of supervisors;The proportion of shares held by the supervisors incentivized the supervisors to perform their supervisory duties more diligently;the proportion of supervisors in the financial background was appropriately increased,and the effectiveness of the supervisory board's financial supervision was enhanced.