Research On The Influence Of Management Power On Financial Restatement Of Companies In Growth Enterprise Market

Financial report is an important way for investors to obtain information of listed companies from the market before investing.The information disclosed in financial report directly affects investors' decision-making.The occurrence of financial restatement is the most direct manifestation of errors in previous financial reports.It reflects the low quality of accounting information disclosed in financial reports.In recent years,financial restatements have occurred repeatedly in the world,and there is a trend of increasing in quantity.The serious distortion of accounting information disturbs the order of capital market and makes investors lose confidence.The management of a company is the decision maker of management and the executive of various decisions.It is directly responsible for the preparation of the company's financial report and the disclosure of accounting information,or has the responsibility of supervising the quality of accounting information.According to the theory of high-level echelon,the heterogeneity of management has different effects on its decision-making,and different background characteristics of management bring different power characteristics,which also have different degrees of impact on accounting information disclosure.Therefore,we directly study the influence of different power characteristics of management on financial restatement of GEM listed companies on improving corporate internal governance and personnel appointment mechanism.It is of great significance for the relevant departments to strengthen the GEM market policy supervision and improve the accounting information disclosure mechanism.On the basis of reviewing and summarizing the previous research results,this thesis first defines the concepts of management power and financial restatement and related basic theories,namely principal-agent theory,information asymmetry theory and high-level echelon theory.Then,combined with the characteristics of listed companies on GEM and the status quo of financial restatement in China,it systematically studies the impact mechanism of management power from four sources on financial restatement.Then,according to the research design,we choose the two positions of general manager and chairman to measure the organizational power of management,the proportion of managerial ownership to measure the ownership power of management,the average tenure of management to measure the prestige power of management,and the educational level of management to measure the expert power of management,and analyze and prove the hypothesis from these four aspects.According to the data of DIB database,this thesis searches for companies that have financial restatements between 2014 and 2017,analyses the current situation of financial restatements,and collects matching samples according to the rules of the same year,the same industry and the scale of assets,and no financial restatements occurred between 2014 and 2017.A total of 595 financial restatements samples and 595 non-financial restatements samples are obtained.Descriptive analysis,paired sample mean test,correlation analysis and logistic regression analysis were used to examine the impact of management power from different sources on financial restatement.It is found that the organizational power of management is positively correlated witih financial restatement,the ownership power of management is negatively correlated with financial restatement,the reputation power of management is negatively correlated witih financial restatement,and the expert power of management is negatively correlated with financial restatement.Finally,this thesis puts forward relevant policy recommendations based on the research conclusions and the reality of our country.