The Influence Of Financial Restatement Of Listed Companies With Different Property Rithts On Their Equity Financing Cost

Equity financing is one of the most important ways to provide financial resources for listed companies.The cost of equity financing will directly affect the corporate profitability.Investors can obtain important information about the company's profit and development through the financial statementswhich makes listed companies false and omit to disclose some financial statement data,making their profit better.Financial restatement of companies will deepen investors' distrust of company information and affect the cost of equity financing.Due to China's special economic environment,different property rights of companies will affect the cost of equity financing.This paper uses the price earnings growth rate(PEG)model to measure the equity financing cost,and studies the impact of financial restatement of listed companies with different property rights on their equity financing costs.This paper mainly uses the combination of theoretical research and empirical research.Firstly,this paper briefly expounds the research background,and explains the research significance.Based on the literature review,it is found that there are few literatures focusing on the financial restatement of listed companies with different property rights.Secondly,this paper use the theories of information asymmetry,principal-agent,signaling and economic consequences to analyze the impact of financial restatement on the cost of equity financing.Thirdly,the paper uses empirical research methods to study the impact of financial restatement on the cost of equity financing of Listed Companies in China,taking the listed companies that issued financial restatement announcements in 2016-2018 as a sample.At the same time,considering the special situation of China,the paper classifies the listed companies according to the property rights,and studies the impact of financial restatement of companies with different property rights on their equity financing cost The research results show that: first,financial restatement increases the uncertainty of investors for company information,investors will demand higher return rate to make up for uncertainty,and the cost of equity financing of listed companies will increase;second,compared with non-state-owned listed companies,state-owned listed companies are more likely to obtain the trust of investors,and their cost of equity financing is lower;third,it is found that the increase of equity financing cost of non-state-owned listed companies is greater than state-owned listed companies after financial restatement,and the property right nature of listed companies weakens the signal effect brought by financial restatement;fourthly,the financial restatement announcement is classified according to its publishing time,and empirical results are obtained When the time of financial restatement announcement is the current period,it will increase the cost of equity financing.