Aarhus Universitets segl

English

Du er her: AU » Om AU » Organisation » A Re-examination of Accruals Quality Following Restatements

Om AU

A Re-examination of Accruals Quality Following Restatements

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avis › Tidsskriftartikel › Forskning › peer review

Dokumenter

DOI

Empirical research from the first years following the Sarbanes‐Oxley Act (SOX) in the U.S. suggests that firms improve accruals quality following restatements, but the materiality of restatements has declined since then. This decline may affect firms' responses to restatements, and hence we paper re‐examine whether restatements are associated with subsequent improvements in accruals quality in a more recent sample. We compare the changes in accruals quality of firms restating between 2000 and 2014 with that of a control group. We do not find that firms improve accruals quality more than the control group following a restatement, even when we isolate the types of restatements considered to be most material. However, we do find that restatements followed by the most negative stock market reactions are associated with a relative increase in accruals quality, indicating that only restatements deemed very severe by investors lead to subsequent improvements in accruals quality. Our results suggest that firms' responses to restatements have changed concurrently with the trend of fewer and less material restatements in recent years.
OriginalsprogEngelsk
TidsskriftJournal of Business Finance & Accounting
Vol/bind47
Nummer7-8
Sider (fra-til)882-909
Antal sider28
ISSN0306-686X
DOI
StatusUdgivet - jul. 2020

Se relationer på Aarhus Universitet Citationsformater

Download-statistik

Ingen data tilgængelig

ID: 179657968