Abstract: Based on the view of interlocked shareholders，this research explore the possibility financial restatement can be contagious on the network of interlocked shareholders. The bellowing findings can be provided from the paper: Interlock shareholders can prevent the financial restatement of interlock companies to some extent. But it has a contrary conclusion that the interlock shareholders increase the possibility of restatements if the interlock occurred before the restatement of contagious company. Logistic Regression shows that the possibility of restatements is significantly related to the existence of interlock shareholders. Moreover, the improvement of holding shares belong to interlock shareholders enhance the effect that interlock shareholder’s impact on the financial restatement of interlock companies. The research provide new view of shareholder’s network to explore the behavior elements influencing on the restatements. Also it is meaningful to control the restatement of public companies in view of business practice.