Causes And Economic Consequences Of Malevolent Early Accounting Error Correction In Listed Companies

Financial report is an important carrier to reflect the operation status of an enterprise through its financial information.It is also an important basis for external investors and internal managers to make investment and financing decisions.In today's stock market,more and more listed companies for early accounting error correction announcement.The scope of the industry involved is wide,the adjusted subjects are numerous and the amount of money is large.In recent years,with the rapid development of China's securities market,the behavior of listed companies in the early stage of accounting error correction frequently occurs,this phenomenon has become the "psoriasis" of corporate financial reports,gradually attracted the attention of market participants.Theoretically speaking,early accounting errors are exactly the "double-edged sword" of financial reporting information disclosure of listed companies,how to use this "double-edged sword" is the most important.On the one hand,the listed company can supplement the disclosure or correct the omission and misstatement by correcting the errors in the published financial report;On the other hand,error correction may become a hidden means for managers of listed companies to manipulate profits and seek personal interests.In short,the economic importance of the accounting error correction of listed companies in the early stage should not be ignored.This paper makes a statistical analysis of the publication time of accounting error correction announcements of listed companies in the past three years and finds that: Nearly 50% of the before and after the disclosure in the financial report of listed companies has carried on the correction or a day or two on the same day,it was suspected to be a manager of malicious use of accounting errors correction principles to achieve certain purpose,the early stage of the frequent use of accounting errors correction criterion for expression of financial report of listed company internal control defects,may also be possible to carry out the surplus management,or financial fraud,regardless of the correct accounting errors,for what reasons of listed companies will affect the quality of financial statements,will also affect the interests of investors.In order to guarantee the rights and interests of stakeholders,maintain the stability of the securities market,and ensure the sound development of the securities market,it is very necessary to study the motivation and economic consequences of accounting error correction in the early stage.Therefore,this paper adopts the research method of combining normative research and case analysis to study the motivation and economic consequences of accounting error correction in the early stage of listed companies.First,on the basis of reviewing the relevant literature of domestic and foreign scholars on accounting error correction in the early stage,it clarifies the relevant theoretical basis.Of securities market at present in our country environment and the related supervision system,it can be seen that listed companies in China in the early stage of the malicious accounting errors correction of the internal motivation is the major shareholder of self-interest,external cause is the external market pressure,in the early stage of the malicious accounting errors correction of low exposure risk and penalty factors such as inadequate exposure;Secondly,the typical representative in the pharmaceutical industry enterprises * ST Kangmei company as an example,a detailed case analysis,summarizes the * ST Kangmei malicious correct pre-production the economic consequence of accounting errors: the enterprise caused shares fell,the management risk rising,falling by administrative penalties,credit rating and increased risk of lawsuits and other serious economic consequences;Finally,some measures and Suggestions are put forward to prevent the correction of malicious accounting errors in the early stage for enterprises' own risk control,investors' own risk identification,audit institutions' risk control and regulatory authorities.Contribution of this paper lies in: first,the listed companies in recent 3 years previous accounting errors correction of the announcement were collected,in order to understand the current preliminary accounting errors correction in the securities market of our country,and combines malicious preliminary accounting errors correction and financial fraud is analyzed,the early stage of the listed companies in order to understand how to use accounting errors correction as cover financial fraud means,thus improve the securities market of stakeholders for the previous accounting errors correction of vigilance.Secondly,the dynamic tracking of * ST kangmei is carried out.The case selection is representative and timely.The dynamic tracking of the case can obtain more adequate and timely information.Furthermore,the real reasons and economic consequences of * ST kangmei's malicious early correction of accounting errors are analyzed.In order to improve investors' awareness of prevention and the listed company's respect for laws and securities market rules,the company can use legal ways to enhance its enterprise value.Finally,based on the theoretical basis,through the analysis of the case summary,from the listed companies,investors,audit institutions and regulatory agencies and other different perspectives to put forward the listed companies malicious early accounting error correction prevention and supervision of the relevant recommendations,in order to prevent and supervise the role.