The Study On The Relationship Between Corporate Governance Factors And Timeliness Of Financial Restatement In China

Financial report is an important carrier of listed companies to disclose accounting information,the information in the report can influence the decision of investors,when the listed company discovers that the disclosed financial report is in error,it should be adjusted retroactively,this retrospective adjustment is called financial restatement.The financial restatement of listed companies indicates that the quality of accounting information is not high,the quality of accounting information is closely related to corporate governance,and the financial restatement of listed companies shows some problems in corporate governance.If the financial restatement is not in time,the restatement of the report will no longer have the meaning to help investors make decisions,and harm the interests of investors.Therefore,the study of the relationship between corporate governance factors and the timeliness of financial restatement has a certain theoretical and practical significance.This dissertation studies the relationship between timeliness of financial restatement in China and corporate governance factors.Based on the principal-agent theory,asymmetric information theory and stakeholder theory in corporate governance theory,this paper chooses A-share board listed company which is the financial restatement of the annual report from 2015 to 2017 for the sample regression analysis.This dissertation takes the time lag of financial restatement report as the explanatory variable,studies from two angles of the internal and external factors of corporate governance,including equity structure,salary incentive,board characteristic and the characteristic of the Supervisory Committee,external factor is external audit.The results of this dissertation show:(1)The proportion of state-owned shares,there is a significant positive correlation between the proportion of circulating shares and the time lag in the report of financial restatement,and the ownership concentration is negatively correlated with the delay of the financial Restatement report,but it is not significant;(2)The managerial shareholding has a significant positive correlation with the time lag published in the Financial Restatement report,Management salary is negatively correlated with the time lag of financial restatement report,but not significant;(3)The combination of two posts is positively correlated with the time lag of the financial Restatement report,but the ratio of independent directors is positively correlated with the time lag of the financial Restatement report,but not significant;(4)The scale of the Board of Supervisors and the time lag of the report of the financial restatement are negatively correlated;(5)Audit opinions and accounting firms cannot significantly influence the timeliness of financial restatement;(6)The solvency is significantly correlated with the time lag published in the Financial Restatement report,and the operational capacity is negatively correlated with the time lag of the financial Restatement report,and the company size has no significant relationship with the time lag published in the Financial Restatement report;(7)The announcement of the financial Restatement report had a timing problem and the bad news was announced later,management holdings reduce the timeliness of bad news.The results of this study confirm the influence of corporate governance factors on timeliness of financial restatement.Based on the empirical research results,this dissertation puts forward the corresponding suggestions,the listed companies can improve the corporate governance structure,improve the timeliness of financial restatement report,improve the accounting information quality of listed companies and protect the interests of stakeholders.