Does the integration between litigation and supervision discipline financial misstatement?  

作　　者：Huihua He Junxiong Fang 

机构地区：[1]School of Business Administration,South China University of Technology,381 Wushan Road,Guangzhou 510641,PR China [2]School of Accounting,Zhejiang University of Finance&Economics,18 Xueyuan Road,Hangzhou 310018,PR China

出　　处：《China Journal of Accounting Research》2024年第2期97-119,共23页中国会计学刊（英文版）

基　　金：We appreciate the comments from seminar participants at the Deloitte Touche Tohmatsu-Fudan Accounting Forum(2022).We are also grateful for the helpful comments and suggestions from Zhifeng Tong.The authors acknowledge financial support from the National Natural Science Foundation of China(grant numbers:72272132,71872048);the Natural Science Foundation of Guangdong Province(grant number:2024A1515011061);the Funding by Science and Technology Projects in Guangzhou(project number:2024A04J3765).Professional English language editing support provided by AsiaEdit(asiaedit.com).

摘　　要：This paper explores the positive governance effects of the Procuratorate’s Public Interest Litigation System in China,which combines the powers of litigationand administrative supervision,on the quality of information disclosure bylisted state-owned enterprises.We report several findings.(1)The likelihoodthat listed state-owned enterprises would issue financial restatements and participate in financial fraud decreased significantly in areas selected for pilotimplementation.(2)The governance effect is stronger in regulated industriesthan in unregulated industries.After the pilot implementation,the agencycosts decreased,and the increase in legal litigation risks related to false statements faced by enterprises played a deterrent effect.(3)The significance of theabove results is stronger when a company’s external and internal governanceare weaker.This study provides both new evidence of the effectiveness of theintegrated governance mechanism and inspiration for future efforts to widelyimplement this mechanism in the capital market.

关 键 词：Integrated Governance Mechanism Procuratorate’s Public Interest Litigation System Financial Restatement Financial Fraud 

分 类 号：F832.51[经济管理—金融学] F275