Research On The Effect Of Financial Background Independent Director Characteristics On Financial Restatement

The authenticity and reliability of accounting information have an important influence on the efficiency of resource allocation in capital market,and financial reporting is an important medium for the communication between listed companies and company stakeholders.In recent years,the increasingly widespread financial restatement behaviors of listed companies have caused users of the financial report to question the reliability of corporate accounting information.It not only brought losses to investors,which has caused investors to lose investment confidence,but also adversely affected the capital market.Therefore,how to effectively restrain the company's financial restatement behavior and improve the quality of accounting information is a hot topic.Since 2001,listed company in China began to apply the independent director system to solve the problems of "insider control" and "major shareholders infringing on the interests of minority shareholders" arising from the entrusted agency and prevent the occurrence of a series of problems such as accounting fraud and violations.According to the “Guidance Opinion on Establishing an Independent Director System in Listed Companies” promulgated by the China Securities Regulatory Commission in 2001,when listed companies employ independent directors,they not only ensure their quantitative proportion,but also fully consider their professional background.They should include at least one senior title or CPA-qualified financial background professionals.The financial independent directors are professional and independent so that they can play the role of supervision and consultation.It is very necessary and meaningful to explore whether the financial independent directors can effectively restrain the company's financial restatement behavior and improve the company's accounting information quality.Based on the sufficient study of researches about financial independent director and financial restatement behavior at home and abroad,this paper adopts a combination of normative research and empirical research,qualitative analysis and quantitative analysis.First of all,the article elaborates the concepts of financial independent directors and financial restatements and related theories.Next,the article studies 1162 sample data of 214 companies in the Shenzhen A-share Main Board Market in 2011-2016.The paper selects six characteristics of financial independent directors as independent variables,financial restatement as the dependent variable,seven relating indicators as control variables and constructs a binary logistic regression model to explore the correlation between the financial independent directors and financial restatement behaviors.The results of the study indicate that:(1)The proportion of financial independent directors,academic and corporate background financial independent directors are negatively correlated with financial restatement behaviors.(2)Young and part-time financial independent directors have a stronger inhibitory effect on corporate financial restatement behaviors.This article puts forward some suggestions on the basis of empirical research,hoping that it can provide reference value for enhancing the supervision effect of financial independent directors and reducing the financial restatement behaviors of listed companies.