Research On The Relationship Between Corporate Governance And Finance Restatement

After the reform and opening up of C hina's capital market and the rapid development of the stock market,the real economy "barometer" gradually towards prosperity,is accompanied by the increase in the number of listed companies and investors,because the stock market volatility and changes in the twinkling of an eye,people pay more and more attention to the quality of information disclosure of listed companies.However,in recent years,the overflow of financial restatements has disrupted the order of capital market,which has attracted the attention of many scholars.Corporate governance,as the motivation of financial restatement,began in the 80 s of last century,but China started relatively late.After 2006,the promulgation of accounting standards marked the formal establishment of restatement system.Corporate governance defects are considered as the main reasons for the financial restatement.Accurately grasping the relationship between various governance factors and financial restatements is the key to recapitulate.Based on this,this paper tries to study the relationship between corporate governance and financial restatement from two aspects of internal governance structure and e xternal governance mechanism,and draws conclusions and puts forward corresponding suggestions.In this paper,110 listed companies in Shanghai stock market,which mainly affect financial data,are listed on the basis of 2014-2016 years' financial restatement announcement,and the corresponding Sample Firms are selected according to the total assets scale,their industries and annual indicators.The financial restatement as the dependent variable,the concentration of ownership,board size,proportion of independent directors,the degree of product market competition,the audit opinion as independent variables,and select the appropriate control variables,establish logistic model,descriptive analysis,correlation analysis,regression analysis of the relationship between corporate governance and financial restatements and draws a conclusion of relevant data.The study found that corporate governance characteristics and financial restatement does exist mutual influence relations,and the influence of internal corporate governance structure is the external mechanism of corporate governance is greater,ownership concentration and financial restatements is significantly related to board size and the proportion of independent directors and financial restatements was negatively correlated,positively related to the degree of competition of external market and financial products the restatement,types of audit opinions are negatively correlated with the financial restatement but not through the significant test.The article studies the relationship between corporate governance and restatement from two aspects of internal supervision,balance and external environment,and tries to analyze the index of external product competition.The conclusion confirms that the intensity of product market competition will affect the occurrence of financial restatement.Therefore,suggestions should be made for the company and the government.The company should strengthen the construction of internal governance structure,optimize the ownership structure and improve the characteristics of the board of directors,and the government can formulate loose and strict restatement policies for different industries with different competitiveness.At the same time,it also provides the basis for the state to regulate the competitive market from a macro point of view.