Research on the Influence of Board Informal Hierarchy on Corporate Financial Restatement Behavior

This paper examines the influence of board informal hierarchy on corporate financial restatement behavior. Taking enterprises listed in Shenzhen and Shanghai A-share markets as the research sample, the paper examines the influence of board informal hierarchy on corporate financial restatement behavior and also explores the regulating effects of three situational factors: board size, number of board meetings, board performance pressure. The results show that: The clearer the board informal hierarchy, the more it will inhibit the financial restatement behavior of firms. Meanwhile, board size negatively moderates the relationship between board informal hierarchy and financial restatement behavior; while the number of board meetings positively moderates the relationship between board informal hierarchy and financial restatement behavior; and board performance pressure negatively moderates the relationship between board informal hierarchy and corporate finance.