Study On The Impact Of Major Shareholders' Shareholding Changes On Restated Financial Reports

In capital markets around the world,the major shareholders of listed companies undoubtedly plays an important role,also their transaction behaviors in the securities market are deeply concerned by the investors.Specific to the present situations of Chinese capital market,the quality of information disclosure of listed companies is often related to the increase or reduction of major shareholders and the concentration of equity.Financial reporting,on the other hand,is a major carrier for information disclosure of listed companies,is an important base for small and medium-sized shareholders on making decisions for buying and selling.Of course,the financial report is the product of the modern company system labeled a "two rights separation".Therefore,most scholars focus on the study of traditional relationship between corporate governance and financial reporting restatement.In this background,in this paper,the direct correlation between the change of major shareholder's stock ownership and the restatement of financial report is studied and analyzed.First of all,this paper collected and sorted out the financial report restatement issued by the listed companies of our two markets from 2014 to 2016 in the information disclosure media,such as the great tide information network,obtained and processed the source documents of large shareholder's shareholding from CSMAR database.Then,this paper selects the related indexes of major shareholders' shareholding changes including the proportion of overweight?underweight?changes of control? ownership concentration and equity balance degree.After that,logistic regression analysis was carried out for the indexes and the restatement of financial reports,and the common problems were tested.The final conclusion shows that : the correlations between the proportion of overweight(when the equity concentration is greater than or equal to a certain threshold value)? the proportion of underweight?changes of control?equity balance degree and financial reporting are positive;correlations between the overweight(when the equity concentration is less than a certain threshold value)?ownership concentration and financial reporting are reversed.So it explores and reveals the standardization of the big shareholders equity trading behaviors ? the rationality of the equity governance mechanism of listed companies from the perspective of financial report information disclosure quality.And it enriches research perspectives aboutbig shareholders equity trading behaviors which only forcing on the corporate performance?earnings management and market reaction in the past.At the same time,it's different from the traditional research of relationship between corporate governance and financial reporting restatement,this paper explores the relationship between one external governance factor,the so-called changes of control and the latter.In addition,based on the findings,this paper puts forward some advice about regulating the behavior of major shareholders' equity trading ? improving the equity governance mechanism of listed companies?protecting the rights and interests of minority shareholders,which will provide some advice and directions for relevant departments to carry out supervision,and provide some empirical support for academic research in this field.