Accounting Restatements and External Financing Choices
نویسندگان
چکیده
منابع مشابه
Accounting Restatements: Malfeasance and/or Optimal Incompetence?
While accounting research often uses restatements as a measure of earnings quality (EQ), often overlooked is the explicit recognition that EQ arises endogenously as a by-product of the firm’s value-maximizing investment in accounting resources. This paper develops a model of restatements that incorporates both the optimal investment in accounting systems (i.e., “optimal incompetence”) and incen...
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Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms...
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We examine whether Basu’s (1997) differential timeliness metric and the related C-Score metric are effective in detecting predictable differences in conservatism surrounding corrections of overstated earnings. Cross-sectional and time-series analyses, employing 2132 firms making restatements during 1999–2005, suggest Basubased metrics capture variation in conservatism. Further, we find that inc...
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We predict and find that accounting restatements induce economically meaningful share price declines among non-restatement firms in the same industry. These price declines are most pronounced among non-restatement firms with low accounting quality, as measured by industry adjusted accruals. Our results are consistent with the notion that accounting restatements cause investors to reassess the c...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.1325261