| The financial report published by the listed company conveys the accounting information of the enterprise and is the key to directly affect the investor’s confidence and investment decision,so its authenticity and reliability are especially important.However,from the annual reports of listed companies in recent years,the proportion of companies with financial restatements is about 20%,which shows that the phenomenon of financial restatement is still very prominent.The alteration and supplement of financial report are often used by listed companies to manipulate profits,which will not only damage the interests of relevant investors,but also affect the future development of enterprises.Therefore,the phenomenon of financial restatement of China’s listed companies cannot be underestimated,and it is necessary to explore the deep-seated reasons that affect financial restatement.The factors affecting financial restatement include not only the internal governance structure of the company,but also the external capital market environment and the special legal environment.However,few scholars study the impact of financial restatement from the perspective of ultimate ownership structure in China.At the same time,the market development level and the legal level of the listed company are different,which makes the restatement of the company may be different.It is necessary to add the level of legal protection of investors to the process of exploring the impact of financial restatements,and to discuss its moderating effect on the ultimate ownership structure and financial restatements.Based on the Information asymmetry theory,principal agent theory and signal transmission theory,this paper uses the data of all a-share listed companies in Shanghai and Shenzhen stock markets from 2010 to 2018,logit regression analysis was used to test the relationship between ultimate ownership structure and financial restatement,and the moderating effect of investor legal protection on the relationship.The results show that:(1)the greater the cash flow rights of ultimate controlling shareholders,the lower the probability of financial restatement.(2)the probability of financial restatement is less in the state-owned enterprises with ultimate controlling shareholder.(3)the greater the separation of the two rights of ultimate controlling shareholders,the greater the probability of financial restatement.(4)when the level of investor’s legal protection is high,the negative correlation between the ultimate cash flow right,ultimate controlling shareholder’s attribute and financial restatement is strengthened,and the positive correlation between the separation of two rights and financial restatement is weakened.Finally,from the perspective of the ultimate ownership structure of listed companies and China’s legal environment,this paper puts forward some suggestions that can effectively reduce financial restatements,which will improve investors’ confidence and protect the legitimate rights and interests of minority shareholders,strengthening the order of capital market and effective allocation of social resources are of theoretical and practical significance. |
