Financial restatement is the correction for the errors of previous financial reports; it not only brings the reliability of accounting information into doubt, but also reduces the value of the company and damages the interests of investors. As the administration of the company, the board of directors is responsible for the company's financial statement. This paper tries to use the empirical study to find out the relationships between board characteristics of real estate companies and the financial restatement. Based on Upper Echelon Theory, this paper selects Chinese real estate listed companies from 2009-2013 as study sample, measuring the board characteristic from seven aspects: board size, board sex ratio, the frequency of board meeting, the separation of ownership, shareholding proportion of board members, proportion of the financial background directors, and proportion of the independent directors. In the end, based on the research conclusion, the paper puts forward some advice to perfect the board of directors system and reduce the incidence of financial restatements.
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