| Summary: | 碩士 === 中國文化大學 === 會計研究所 === 95 === After the financial statement fraud burst in the world, the societies pay much attention on corporate governance. The function of boards of directors and supervisors is the insider mechanism of the corporate governance, and the CPA also play critical roles on outside supervisor. When insider and outsider mechanism both work effectively, the corporate governance will achieve its goal. Therefore, we examine the relation among directors’ and CPA expertise and financial restatement, and to research the directors’ and CPA expertise whether can strengthen the administrative mechanism, and reduce the incidence of restatement.
We examine a sample of 34 restatements on listed company in the period 2003-2006, together with matched pairs control groups of similar industry and time. On the directors’ expertise perspective, our research find out that the boards of directors and supervisors who have financial background have significant negative relationship with restatement, and the existence of other jobs held by directors and supervisors has significant positive relationship with restatement. On the CPA expertise perspective, our research find out that the auditor tenure has significant negative relationship with restatement, and the reputation auditor has significant negative relationship with restatement.
|
|---|
