An Analysis of the Factors Affecting Financial Restatement of Public Company

摘要

Financial restatement is the announcement of an ex-post facto remedy for errors, omissions or misleading information in the financial reports of a listed company on a voluntary basis or under the supervision of a certified public accountant or regulatory body. These will inevitably lead to an incalculable loss for investors and a fatal blow to the capital market. This article, I use the combination of the theoretical exposition and empirical inquiry, using the relevant model to explore the factors that affect its financial restatement. It is concluded that the changes of a firm's profitability, short-term solvency and capital-liability ratio will become the key factors of financial restatement, and how to avoid financial restatement as far as possible, it is also necessary to re-check in the process of internal control.