The Relationship Between Corporate Governance Characteristics And Timeliness Of Financial Restatement

As one of the most important way of information disclosure,financial statement is a important path for investors to acquire financial information of corporate,so the quality of financial statement is attracting more and more attention.Financial statement restatement is the modification of early reports,reflects the low quality of corporate financial information,and usually result in negative market result.In recent years,the financial statement restatement is becoming more general and frequent in Chinese listed companies.It reflects the low quality of corporate financial information,depress investors' confidence and make the capital market less efficient.Timeliness of financial statement restatement is very important for investor to make invest decisions and protect the justice of capital market.In order to improving the financial information quality of capital market,this paper use data from 2011-2015 to discuss about the relation between the timeliness of financial statement restatement and corporate governance characteristics.This paper is divided into six parts as follows:The first part introduces this paper's background and significance,give the basic information of financial statement restatement,and describes research contents and methods,as well as description of the innovation of this paper.The second part is literature review.The paper sorts the domestic and foreign important literature about financial statement restatement,timeliness of financial information,and relevant corporate governance research.In the end it gives the summary of literature review.The third part indicates definition,relevant theories and hypotheses.First it defines financial statement restatement,timeliness of financial statement restatement,and the classification of financial statement restatement report.Then describe the theoretical basis of this paper,including the agency theory,information quality theory and transaction cost theory.Finally,propose the hypothesis on the basis of theory analysis.The fourth part is the research design.This part select the research sample and data according to research aim,establish model and select the study variables.The fifth part is the empirical analysis.Basing on the data,this paper carry out descriptive statistics,correlation analysis,regression analysis and the robustness test and analysis the empirical results.The sixth part is to conclude.According to empirical research results,this paper try to give suggestions,put out the shortage and indicate the future direction of relevant research.According to the empirical research results,Manager's salary amount and management ownership have significant positive correlation to time lag of financial statement restatement,it reflects that the higher level of managers' pay and management ownership decrease the timeliness of financial statement restatement.The largest shareholder ratio of no absolute holding have significant negative correlation to time lag of financial statement restatement,it reflects that largest shareholder have an effect on manager supervisor.The largest shareholder ratio of absolute holding and independent director ratio have no significant relationship with time lag of financial statement restatement,indicates the border of directors plays a limited role in monitoring managers,the governance capability of directors needs to be enhanced,especially the participation of independent directors in corporate affairs,so the supervision on managers can be enhanced.In those corporate whose property of beneficial controlling owner belongs to the state,The largest shareholder ratio of no absolute holding have significant positive correlation to time lag of financial statement restatement,and independent director ratio have negative relationship with time lag of financial statement restatement,indicates agency problem in such corporate is more serious,but independent director's supervision on managers is efficient.Innovation of the this paper is as follows.One side,this paper elaborates the perspective of relevant research,extends financial statement restatement to the timeliness of financial statement restatement,and bases on the important rule of accounting information quality——timeliness,enriches research in corporate governance characteristics and the quality of accounting information.The time lag of financial statement restatement is collected by hand,the data has original creativity.On the other side,this paper take consideration of the property of beneficial controlling owner,which is a special phenomenon of China.State owned corporate play an important part in China capital market,and property has influence on manager supervision,it is reasonable to research on the relationship between ownership property and financial statement restatement.