XBRL?Timeliness Of Financial Restatement And Reaction Of Investors

Since 1990s,the listed company's financial restatement in the world capital markets has become a common phenomenon,which is a severe blow to investor confidence in the capital markets.The untimely disclosure of the financial restatement will further reduce the quality of the accounting information.This paper takes the timeliness of financial restatements as the research breakthrough point,and takes the financial restatement of China's main board A share listed companies in the past 2005-2016 years as the research sample,to research on three aspects.First,we analyze the distribution of timeliness of financial restatements in frequency,amending on the reports,type of bulletin,and reasons of financial restateme,so as to further understand the current situation of timeliness of financial restatements in China.Secondly,XBRL financial reports began to implement in Shanghai stock exchange and Shenzhen stock exchange in 2008 and 2009 respectively,and whether XBRL as a regulatory technology has an impact on the timeliness of screening misstatements or omissions.Based on the theoretical analysis,this paper establishes a model to verify the impact of XBRL financial reporting on the timeliness of financial restatements.It also studies the implementation effect of XBRL financial reporting in China from the perspective of timeliness of financial restatements.Finally,this paper studies the impact of timeliness of financial restatements on investor response through an event study.The current situation of timeliness of financial restatements shows that the overall timeliness of financial restatement needs to be improved,and some problems about timeliness are more serious.The timeliness of annual reports restatements is bad,the reports of supplemental corrections are delayed for a long time,and the restatement reports caused by regulatory departments require are delayed for a long time.The study of XBRL reports'impact on the timeliness of financial restatements found that the implementation of the XBRL financial report can effectively improve the timeliness of financial restatements.At the same time,implementation effect of the XBRL financial report in Shenzhen Stock Exchange is more significant than in Shanghai Stock Exchange.The study of the influence of the timeliness of financial restatements on investor reaction shows that the less timely the financial restatement is,the more negative the investor's reaction is.The conclusion is significant for China's Ministry of finance,CSRC and exchanges to further improve the application of XBRL platform and strengthen the control of the timeliness of financial restatements.