the effects of corporate governance mechanisms and financial variables on the financial restatement of the firms listed on the tehran stock exchange

this paper examines the effects of corporate governance (board structure and ownership structure) and some financial variables on financial statement restatements. for this purpose, citing firms have been divided into two groups: a group comprising firms (48 firms) that have maximum amount of the annual adjustment (more than 5% of ebit) and a group (control group; 46 firms) comprising firms that have minimum amount of the annual adjustment. they were subsequently analyzed using a t-test and logistic regression. the results show that there is a positive relationship between ceo duality and financial statement restatement, and there is a positive relationship between board size and financial statement restatement. other independent variables have been studied, though no significant relationship has been observed. among the financial variables, there was shown a positive relationship between gearing ratio and financial statement restatement; moreover, bankruptcy probability has a negative relationship with financial statement restatement.