Rearch On Financial Restatement Of Dandong Xingtai Electric Co.

Financial report is a reflection of enterprise operating performance,and a window in the capital markets,companies use it to show its operating results and development potential,investors also through it to find investment opportunities.However,the occurrence of financial restatements has the function of the window been curbed,due to the frequent occurrence in the capital markets,financial restatement also caught the attention of the researchers all around the world.Some researches pointed out that financial restatements is a symbol of poorly quality on financial information disclosure,which would increase the risk of investors' investment and hinder the healthy development of capital market.Therefor,it is necessary to conduct in-depth exploration and research on financial restatement,so as to reduce the high investment risk and maintain the sound operation of the capital market.Firstly,this paper sorted out the current situation of financial restatement under the overall environment of capital market in China,summarized and analyzed the financial restatement of listed companies from 2013 to 2017,and found that the financial restatement of listed companies in China has problems such as high proportion of annual report restatement,irregular disclosure and high proportion of profit indicators.Then,we selected the typical case of XINGTAI Electric Co.to be the research object.From the perspective of restatement of causes and results,it was found that the company's financial restatement was characterized by serious restatement nature,far back year,and multiple contents involved.The reasons for the restatement mainly included the requirement of listing,the need to conceal and occupy the assets of listed companies,and policy changes.The defects of corporate internal governance system,the lack of professional ethics of relevant responsible persons,the dereliction of duty of intermediary institutions in the audit process and the lack of supervision system also increase the possibility of corporate financial restatement.Finally,from the perspective of regulating the quality of information disclosure in the capital market,this paper puts forward Suggestions for listed companies,intermediary agencies and government agencies.