The Research On The Motivations And Consequences Of Financial Restatements In Listed Companies

Financial report of listed companies is an important way for external investors to understand the financial situation of companies,so it is particularly important to change the quality of corporate information disclosure.However,according to relevant scholars' research,in recent years,Financial Restatement Phenomenon and Its Unoptimism in China in Recent Years,which indicates that the quality of information disclosure of Listed Companies in China is worrying,and the higher the frequency of financial restatement events,the more insufficient the confidence of market investors.In order to improve the quality of information disclosure of Listed Companies in our country and ensure the orderly operation of capital market,this paper presents a case study.The motivation of financial restatement and its economic consequences will be further explored.Because of the overflow of financial restatement in China,this paper first makes a statistical analysis of the phenomenon of financial restatement from 2014 to 2017,and finds that about 30% of Listed Companies in China carry out financial restatement every year from 2014 to 2017,and the companies that have financial restatement are all over the industry.Secondly,the form of financial restatement disclosure is not standardized.Most enterprises choose the way of disclosure independently according to the situation,including restatement of the report title,content and reasons.In addition,the content of financial restatement of Listed Companies in China mainly involves: summary of main accounting data and financial indicators,relevant notes to major financial statements,shareholders and actual controllers,the use of raised funds and related transactions,etc.After giving a general description of the financial restatement in China,this paper chooses Jiadian Stock Company,the manufacturing listed company with the most frequent financial restatement in China,as a case study.In this paper,every financial restatement of Jiadian shares has been further explored.It is found that the financial restatement of Jiadian shares includes the normal restatement of false or undisclosed accounting information before the enterprise,and the malicious restatement that was forced to correct because of false accounting information in the previous year.Comprehensive analysis of financial statements,this paper analyses that the main motivation of financial restatement of Jiadian shares is earnings management within the enterprise,the pressure of "shelling" exists in the company,the financing demand exists in the company,and the company improves the quality of information disclosure.In the analysis of the economic consequences of Jiadian shares,this paper finds that financial restatement affects the share price of Jiadian shares to a certain extent before and after the restatement,which has led to the resignation of several senior executives of Jiadian shares,and also has a certain impact on the concentration of customers and suppliers of Jiadian shares.