The Behavior Of Financial Restatemen

In general,whether investors or other people want to know the situation of a listed company,financial reports play a bridge role,so that enterprises can show the company's operating conditions to the outside world,the outside world can also have a specific understanding of the company through this aspect.So the quality of information disclosure is very important.For listed companies,if you want to attract more investors and urge them to add their capital to your company,then in this case,a good financial report can often bring a lot of benefits to the company.On the contrary,it will prompt investors to leave you and choose other companies that he thinks are more worthy of investment,resulting in the company can not develop better,or even will.Be punished by relevant departments.Our country's financial restatement system was originally designed to reduce the information asymmetry in the capital market.Sometimes some listed companies will correct the past financial reports in the following years for various reasons after the disclosure of annual financial statements.However,in recent years,the phenomenon of financial restatement of listed companies has become more and more rampant.More and more listed companies regard it as a legitimate and routine accounting means to regulate earnings,in order to avoid the supervision of capital market,so that the interests of investors are infringed,which is not conducive to creating a good environment for capital development.From this,we can understand that the current financial restatement system has become a way for some listed companies to fake,deviating from the original intention of the system.This paper analyses the case of X Company,mainly based on the normative research method,refers to the research materials of domestic and foreign scholars on this issue,and describes the situation in the past seven years.It is hoped that through the analysis of X company's own financial situation,internal control situation,external audit,personnel situation,ownership structure and other factors,the motivation behind the financial restatement can be deeply excavated,and the motivation can be identified and suggestions can be given,in order to further improve the disclosure of accounting information in China,hoping to make the development of China's capital market better.Financial restatement has brought bad economic consequences to X Company,damaged the interests of investors themselves and reduced confidence in enterprises,which has a great impact on the development of capital market.This paper analyses the problems of this enterprise at present,such as: weak supervision of the board of directors,even overlapping with the responsibilities of the board of supervisors,related party transactions,etc.The board of supervisors is virtual and does not open the board of supervisors according to the requirements;the unreasonable ownership structure has a dominant suspicion;the company's own internal control has defects and so on.Generally speaking,there are many reasons for financial restatement,such as: the failure of internal control is one of the reasons,as well as the information asymmetry between companies and investors,the lack of market supervision,the financing pressure of the company itself,the imperfect laws and regulations and systems related to financial restatement,the low cost of violations by company executives and firms,and so on.These may lead to financial restatements.This paper will combine the case of X company to analyze the causes of financial restatement in detail,hoping to find out how to effectively control and reduce the occurrence of non-bona fide financial restatement.