The Timing of Accounting Restatements PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Timing of Accounting Restatements PDF full book. Access full book title The Timing of Accounting Restatements by Yuezhu Li. Download full books in PDF and EPUB format.
Author: Yuezhu Li
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 128
Get Book Here
Book Description
Financial disclosure, playing an important role in communicating business situations with external users, is always under strict standards and regulation rules in relation to treatments, contents and presence. Timing of these public announcements then become a popular firms’ disclosure strategy. Using U.S. financial market data over ten years from 2005 to 2015, this study examines the strategic intra-week timing of companies’ restatements disclosure with relation to the news contained. Different from previous studies on highly visible annual earnings announcements or on purely voluntary management forecast announcements, this research uses restatements whose disclosure are mandatory from regulator but the timings are unscheduled. In addition, the market reaction of these restatements in relation to the disclosure timing is examined, showing whether such distraction is a successful strategy in mitigating negative market reactions. This research contributes to both restatements studies and limited attention studies.
Author: Yuezhu Li
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 128
Get Book Here
Book Description
Financial disclosure, playing an important role in communicating business situations with external users, is always under strict standards and regulation rules in relation to treatments, contents and presence. Timing of these public announcements then become a popular firms’ disclosure strategy. Using U.S. financial market data over ten years from 2005 to 2015, this study examines the strategic intra-week timing of companies’ restatements disclosure with relation to the news contained. Different from previous studies on highly visible annual earnings announcements or on purely voluntary management forecast announcements, this research uses restatements whose disclosure are mandatory from regulator but the timings are unscheduled. In addition, the market reaction of these restatements in relation to the disclosure timing is examined, showing whether such distraction is a successful strategy in mitigating negative market reactions. This research contributes to both restatements studies and limited attention studies.
Author: Orice Williams
Publisher: DIANE Publishing
ISBN: 1422309177
Category :
Languages : en
Pages : 211
Get Book Here
Book Description
In 2002, it was reported that the number of restatement announcements due to financial reporting fraud &/or accounting errors grew significantly between Jan. 1997 & June 2002, negatively impacting the restating companies¿ market capitalization by billions of dollars. The author was asked to update key aspects of the 2002 report. This report discusses: (1) the number of, reasons for, & other trends in restatements; (2) the impact of restatement announcements on the restating companies¿ stock costs & what is known about investors¿ confidence in U.S. capital markets; & (3) regulatory enforcement actions involving accounting- & audit-related issues. Includes recommendations. Charts & tables.
Author: Nathan Young Sharp
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 164
Get Book Here
Book Description
This dissertation investigates whether firms strategically disclose accounting restatements by coordinating restatement announcements with earnings releases, delaying the announcement of income-decreasing restatements, or obscuring restatement announcements by failing to disclose news of a restatement on a Form 8-K filing. I examine restatements announced after a Securities and Exchange Commission rule (effective August 24, 2004) that mandates a unique 8-K filing for restatements. Consistent with an attempt to lessen the negative impact of a restatement announcement, I find that when firms package restatement announcements with earnings releases they most often pair small income-decreasing restatements with positive earnings surprises. I also find that monitoring by the SEC decreases the probability of firms' mixing restatement and earnings news. On average, firms delay announcements of income-decreasing restatements longer than announcements of income-increasing restatements, and institutional ownership is positively associated with more timely disclosures of restatement news. I show that firms with weak corporate governance or less external monitoring are more likely to make news of a restatement difficult to find. Restatements performed without a Form 8-K filing are much less likely to be disclosed in a company-issued press release or to receive attention in the business press, and I find some evidence that the initial market reaction to obscure restatement announcements is less negative than the reaction to restatements disclosed transparently. Collectively, these results suggest that even in the presence of strict disclosure requirements, some firms attempt to strategically manage the timing and transparency of restatement announcements and investors do not appear to undo the effects of firms' strategic behavior.
Author: MATOZZA FELICE
Publisher: G Giappichelli Editore
ISBN: 8892122363
Category : Business & Economics
Languages : en
Pages : 19
Get Book Here
Book Description
This monograph is one of the few books to investigate the understudied but fascinating topic of accounting restatement in the European context. In the first chapter, substantial changes over time in treatments for correction of errors under the International Financial Reporting Standards and Italian generally accepted accounting principles are examined. Following that, a brief overview of the literature, mainly concerning the United States environment, and characteristics of and trends in accounting issues drawn from restatements announced by a sample of firms listed in European countries from 2016 to 2020 are presented. After a review of multi-country empirical research, chapter 3 presents an assessment of the frequency and severity of restatements at the country, industry and year levels. Finally, chapter 4 considers the forewarning effect of topics communicated in the key audit matters in relation to subsequently revealed account-specific misstatements by proposing a new matching procedure. Throughout the work, the author provides frequent comparisons with findings obtained by United States scholars.
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Financial statements
Languages : en
Pages : 276
Get Book Here
Book Description
Author: Jeffrey L. Callen
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
Get Book Here
Book Description
This study investigates a large sample of financial statement restatements over theperiod 1986-2001, and compares restatements caused by changes in accounting principlesto those caused by errors. Typically, investors perceive restatements as negative signals due to three potential reasons: (i) the restatement indicates problems with the accounting system that may be manifestations of broader operational (and managerial) problems, (ii) the restatement causes downward revisions in future cash flows expectations, and (iii) the restatement indicates managerial attempts to cover up income decline through acirc;not;Scookingthe booksacirc;not;?. We provide evidence that market reactions to restatements due to errors aregenerally negative. We show that these restatements come in periods of declining profits and lower profits than industry peers for the restating firms, consistent with bothopportunistic managerial behavior and operational problems. However, investorsacirc;not;quot;reactions to income-increasing restatements due to errors are not different from zero,suggesting that the perceived failure of the accounting system is just offset by the upward revisions in future cash flow expectations in these cases of income-increasing errors. Thus, our combined results show that not all restatements are alike; users of theinformation need to carefully assess the existence and potential effects of the three factors that typically cause the downward revisions in stock prices on a case by case basis.
Author: MATOZZA FELICE
Publisher: G Giappichelli Editore
ISBN: 8892194550
Category : Business & Economics
Languages : en
Pages : 209
Get Book Here
Book Description
This monograph is one of the few books to investigate the understudied but fascinating topic of accounting restatement in the European context. In the first chapter, substantial changes over time in treatments for correction of errors under the International Financial Reporting Standards and Italian generally accepted accounting principles are examined. Following that, a brief overview of the literature, mainly concerning the United States environment, and characteristics of and trends in accounting issues drawn from restatements announced by a sample of firms listed in European countries from 2016 to 2020 are presented. After a review of multi-country empirical research, chapter 3 presents an assessment of the frequency and severity of restatements at the country, industry and year levels. Finally, chapter 4 considers the forewarning effect of topics communicated in the key audit matters in relation to subsequently revealed account-specific misstatements by proposing a new matching procedure. Throughout the work, the author provides frequent comparisons with findings obtained by United States scholars.
Author: Orice M. Williams
Publisher: DIANE Publishing
ISBN: 9781422309988
Category :
Languages : en
Pages : 88
Get Book Here
Book Description
Author: United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Commerce, Trade, and Consumer Protection
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 60
Get Book Here
Book Description
Author: Paul Hribar
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
Get Book Here
Book Description
This paper examines the effect of accounting restatements on a firm's cost of equity capital. We show that, on average, accounting restatements lead to both decreases in expected future earnings and increases in the firm's cost of equity capital. Depending on the model used, relative percentage increases in the cost of equity capital average between 7 and 19 percent in the month immediately following a restatement. The increase in the cost of capital dissipates as time passes and after controlling for analyst forecast biases, but continues to average between 6 and 15 percent in the most conservative setting. We also show that restatements initiated by auditors are associated with the largest increase in the cost of capital, and that firms with greater leverage experience greater increases in their cost of capital. Overall, our evidence is consistent with accounting restatements lowering the perceived earnings quality of the firm and increasing investors' required rates of return.
