Empirical Test the Province and Industry Differences of Financial Restatement in China

This paper focuses on the industry contagion effect of financial restatement and the factors that impact such effect by statistically analyzing the differences in the financial restatement among regions and industries in China. With the method of building models and panel regression analysis, the industry contagion effect aroused by the financial restatement among regions and industries is tested via building panel threshold regression model, the test results confirms that the industry contagion effect of the financial restatement exists significant differences among regions and industries. Firstly, industry contagion effect of financial restatement of listed companies exist provincial difference in our country. Industry contagion effect of financial restatement of eastern is most significant, and the central slightly take second place, western province is least significant. In the eastern region, in addition to Guangdong and Hubei, the rest provinces are significant, industry contagion effect of the financial restatement of listed companies is especially significant in Beijing, Tianjin, Shanghai, Jiangsu and Fujian. Only Hunan, Hubei, Henan and Anhui four provinces in the central region are more significant, other provinces are not. And industry contagion effect of financial restatement is the least significant in the western area on the whole, only Guangxi, Chongqing, Qinghai three provinces and cities are significant, and industry contagion effect of financial restatement in other western provinces is not obvious. Secondly, industry contagion effect of financial restatement of listed companies exists industry differences in China. Industry contagion effect of financial restatement on capital material is significant more than consumption material industry and other industries.