Research On The Relationship Between Corporate Governance Of GEM Listed Companies And Financial Restatements

The Growth Enterprise Board market has continued to expand since the opening of the board in 2009,but some problems have also been exposed,among which the issue of financial restatement gradually attracted people's attention.Financial statements are the most important and authoritative source of information for investors to comprehend the enterprise's operating results and financial condition,especially for GEM listed companies whose investing risk is very large.Therefore,the reliability and relevance of financial statements have been taken seriously.But the releasing of the financial restatement indicates the existence of omissions or errors in the early financial report.The manager may even use financial restatements to delay the disclosure of unfavorable information,which may affect the investor's investment decisions and cause investors' economic losses.Foreign theoretical research and empirical analysis on financial restatement have been fairly mature,while domestic research on them has been relatively few,not to mention research on the financial restatement of the GEM market.This thesis focuses on GEM listed companies which are small but high-growth,and high-risked,and systematically discusses how corporate governance impacts GEM listed companies to publish financial restatements from a theoretical and empirical perspective.This thesis selects the GEM listed companies from 2013 to 2017 as research samples and uses SPSS22.0 to conduct descriptive statistical analysis and binary logistic regression analysis.This thesis selects the listed companies on the Growth Enterprise Market from 2013 to 2017 as research samples and uses SPSS22.0 to conduct descriptive statistical analysis and binary logistic regression analysis on the effect of corporate governance on the GEM listed companies' financial restatements.The thesis finds that the higher the ownership concentration in the company of the GEM,the higher the proportion of circulation shares,the larger the size of the board of directors,the lower the proportion of duality of COB and CEO,the lower the proportion of management shareholding,the higher the management pay,then the quality of information disclosure of the company is higher and the probability of a financial restatement is lower.At the same time,the equity balance degree,the number of shareholders meetings and board meetings,and the proportion of independent directors are not significantly related to the financial restatement of the GEM listed companies.It can be seen that the quality of accounting information of GEM listed companies is closely related to its corporate governance structure.This thesis combines previous research results and selected several major indicators from the perspectives of equity structure,board characteristics,and senior management incentives to analyze the relationship between corporate governance and financial restatement.The research findings will help us have a better understanding of the relationship between the GEM financial restatement and its corporate governance,which can help us find a breakthrough to improve the quality of financial information and quality of GEM companies.