The Company Financial Statement Restatement Impact Study Of The Capital Cost

Financial statement restatement refers to the behavior of companies to supplement the material omissions or correct the wrong information in the financial report after the companies achieve their own goals spontaneously or after the certified public accountants and regulatory departments find out.Financial report as one of the most main forms of financial information disclosure of listed companies,investors and debtors through the financial statement restatement can understand the company's financial situation,make investment decision,the quality of the financial report can ensure the effective operation of capital market and healthy development of the company financial statement restatement is disclosed in the financial report before has some problems.It may lead to the punishment of regulatory authorities for the violation of corporate information disclosure,which is not conducive to the external financing of the company and leads to higher capital cost.This paper tries to combine the basic theory of corporate financial statement restatement and research progress at home and abroad,to our country financial statement restatement behavior of companies to empirical study of the influence of the capital cost,to reduce the financial statement restatement behavior of companies,improving the quality of financial report to provide empirical evidence and power,at the same time rich financial statement restatement economic consequences research.The research of this paper is mainly divided into five parts: introduction,concept definition and theoretical basis,theoretical analysis and research hypothesis,empirical analysis,research conclusion and relevant Suggestions.The first part is the introduction,including the introduction of the research issues,research significance,literature review,research ideas and research content,and the innovation of this paper is explained.The second part is the concepts and theoretical basis of financial statement restatement and the capital cost,this part includes two main content research involves the related concepts and theoretical basis.The third part is the theoretical analysis and research hypothesis of the impact of financial statement restatement on capital cost of listed companies,including the theoretical analysis of the impact of financial restatement on debt capital cost and equity capital cost of listed companies and the relevant research hypothesis.The fourth part is the empirical research on the impact of financial statement restatement on capital cost,including research design,descriptive statistics,correlation analysis and analysis of heterogeneity.The hypothesis put forward in this paper is tested by empirical analysis,Meanwhile,the heterogeneity of the impact of f inancial statement restatement on capital cost of listed companies is discussed and the conclusion is drawn.The fifth part is the research conclusion and related Suggestions.Based on the data of a-share listed companies in Shanghai and shenzhen from 2007 to 2018,this study adopted the empirical research method of panel data fixed-effect regression to study the impact of financial statement restatement on capital cost of listed companies.The research finds that :(1)there is a significant positive correlation between the financial statement restatement of listed companies and both debt capital cost and equity capital cost,indicating that investors and creditors have fully considered the financial statement restatement of listed companies when making capital pricing decisions.(2)the impact of listed companies' financial statement restatement on equity capital cost is significantly greater than that on debt capital cost.In terms of there is a big difference between Chinese shareholders and professional financial institutions like Bank in information acquisition ability and channels in the capital market.Compared with individual shareholders,financial institutions have a stronger ability to acquire the financial status of listed companies.(3)The impact of listed companies financial statement restatement on debt capital cost and equity capital cost is more significant in companies with lower financial reporting quality.(4)the impact of listed companies financial statement restatement on debt capital cost and equity capital cost is more significant in companies with a high degree of information asymmetry.