The Impact Of Executive Career Background On The Quality Of Financial Report

In recent years,the phenomenon of financial restatement and information disclosure violation of China's listed companies is increasingly common,which has a negative impact on protecting the interests of investors and promoting the healthy development of the capital market.Therefore,how to reduce the occurrence of this phenomenon is of great significance.Based on the Upper-Echelon theory,Principal-Agent theory and Human Capital theory,this paper selects the data of A-share listed companies from 2011 to 2018,and matches the problematic samples with the unproblematic samples through the Propensity Score Matching method.Afterwards,an empirical study was conducted on the relationship between the career background of executives and the restatement of financial reports and information disclosure violations.The research finds that:(1)when there are executives with legal background,the probability of financial restatement and information disclosure violation is lower;When there are executives with technical background,the possibility is higher;the executives with finance-management background have no significant impact,which may be because the executives with legal background are more alert to the legal consequences caused by the low quality of financial reports,while the executives with technical background are more dependent on other executives to make decisions.(2)considering the influence of the composite backgrounds,this paper further finds that the executives with composite background of finance-management and law can improve the quality of financial reports,while those with composite background of finance-management and technology have a negative impact on the quality of reports.By discussing the influence of executives' career background on the financial restatement and information disclosure violations,this paper helps to provide references for external regulators to strengthen supervision,and it's also of great significance for the construction of internal senior management team.