Financial Restatements, Nature of Property Rights and Scale of Debt Financing-Based on an Empirical Analysis of the A-Share Listed Companies

Abstract

Financial restatements are the factors that can affect the scale of debt financing of the companies. This paper takes the listed companies in Shanghai A-stock market and Shenzhen A-stock market from 2011 to 2015 as research samples, examining the relationship between financial restatements and the scale of debt financing. The research found that financial restatements and the scale of debt financing has a significant negative correlation. After joining property right variable，further study have found that there is non-significant correlation between financial restatements and debt financing scale in state-owned companies. Namely the background of the state-owned property right strengthened the financial integrity of the company, making the financial restatement and debt financing scale show different characteristics from non-state-owned companies.