Download or read book Financial Restatements written by Orice Williams and published by DIANE Publishing. This book was released on 2007-12 with total page 211 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Financial Restatement Database written by Orice M. Williams and published by DIANE Publishing. This book was released on 2006 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting Restatements written by Jeffrey L. Callen and published by . This book was released on 2013 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Financial Statement Restatements written by United States. General Accounting Office and published by . This book was released on 2002 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial statement restatements trends market impacts regulatory responses and remaining challenges written by and published by DIANE Publishing. This book was released on with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting restatement a European perspective e Book written by MAFROLLA ELISABETTA and published by G Giappichelli Editore. This book was released on 2021-03-02 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is motivated by the long-lasting, although still recent, discussion on how to ensure that accounting numbers, while supported by auditors’ favourable opinions, are definitely reliable and eliminate any suspicion that accounting reports could be affected by opportunism, which is documented by the discovery of frequent accounting mistakes. The book analyses and discusses restatements from both the theoretical and the practical perspective, considering the complex environment in which they may occur and focusing particularly on accounting restatements that have affected European corporations for over a decade since the mandatory adoption of the International Financial Reporting Standards.

Download or read book Accounting Restatements and Key Audit Matters disclosure written by MATOZZA FELICE and published by G Giappichelli Editore. This book was released on 2022-07-15 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Accounting Restatements and Key Audit Matters disclosure e Book written by MATOZZA FELICE and published by G Giappichelli Editore. This book was released on 2022-07-15 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Restatement of the Law Agency written by American Law Institute and published by American Law Institute-American Bar Association(ALI-ABA). This book was released on 2006 with total page 634 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting restatement a European perspective written by MAFROLLA ELISABETTA and published by G Giappichelli Editore. This book was released on 2021-03-02 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting Restatements written by Tahrima Kawser Tithe and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Accounting restatements are significant economic events that impact a firm’s reputation for integrity and reliable reporting. This study used around 2900 firms of United States to study the stock market and liquidity impacts at accounting restatement during 1997 to 2010. In addition, this study also attempts to capture the impacts of regulatory initiatives like Sarbanes-Oxley Act (SOX) on stock market and liquidity impacts of accounting restatements. This study used Fama-French 3 factor model for calculating the expected abnormal return and found that post-regulation negative abnormal return is lower than pre-regulation period. This study also documented that post-regulation period and business cycle was negatively related with illiquidity. However, no statistical significance was found between accounting restatement and illiquidity."--Leaf ii.

Download or read book Stealth Disclosure of Accounting Restatements written by Rebecca Files and published by . This book was released on 2009 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Managers exercise considerable discretion over how they announce an accounting restatement in a press release. Some firms issue a press release that discloses the restatement in the headline (high prominence). Others provide a press release with a headline on a different subject (for example, earnings news) but describe the restatement in the body of the release (medium prominence). The remaining firms discuss the restatement at the end of the press release in a footnote to operating results (low prominence). Mean three-day returns differ considerably across these three categories of prominence (-8.3, -4.0, and -1.5 percent, respectively). We find that disclosure prominence is significantly negatively associated with returns in a model that controls for the seriousness of the GAAP violation, restatement magnitude, other restatement characteristics, and potential endogeneity. Similarly, we find the likelihood of class action lawsuits is significantly reduced with less prominent disclosure.

Download or read book Accounting Restatements and Information Risk written by Todd D. Kravet and published by . This book was released on 2010 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the association between accounting restatements and the pricing of information risk. Using the Fama and French three-factor model augmented with an information risk factor we find a significant increase in the factor loadings on the information risk factor for restatement firms after a restatement announcement. We find that the increase is related to the discretionary component of information risk and associated with the short-window price reaction to restatements. We study several potential determinants of the change in information risk pricing and find evidence consistent with the restatement reason, restatement initiator and number of times a firm restates affecting the change in the pricing of information risk. We also find an increase, of smaller magnitude, in the pricing of information risk for non-restatement firms in the same industries as the restatement firms consistent with an information transfer effect.

Download or read book Exploring the Causes of Accounting Restatements by Family Firms written by Shu-Hui Sue and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research shows that family firms have better earnings quality than non-family firms in common-law countries and highly developed markets. In contrast, we do not find a significant difference in the financial reporting quality between family and non-family firms in the context of a civil-law system and less developed market. We show that the financial reporting quality of family firms is conditioned on (1) the divergence between the controlling shareholders' voting rights and their cash flow rights, and (2) the firm's reputation for integrity, while these two conditions do not explain the restatement likelihood for non-family firms. Moreover, when accounting irregularities are detected in the case of family firms, they are associated with more serious accounting restatements. Together, these results imply that the severity of the conflict between ultimate and minority shareholders, and a lack of integrity, explain the propensity for making financial restatements among family firms in a regime characterized as having weak investor protection and concentrated ownership structures.

Download or read book The Big Question on Accounting Restatements written by Kingsley O. Olibe and published by . This book was released on 2018 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, I examine when and how accounting restatement information about a firm manifests in its price and volume of shares traded and empirically contrast price and trading volume responses with the endogenous firm size factor. The stock price analyses indicate that investors' increased announcement-period response is systematic (i.e. has a market-wide effect). I find evidence of price adjustments in the non-announcement and extended announcement days, suggesting that the market is adjusting slowly to restatement information as investors weigh disclosures according to the credibility of the information. I find evidence of significant pre-and post-disclosure periods trading responses, consistent with Holthausen and Verrecchia (1990) two round trading by investors. In comparing price response between large versus small firms, I find evidence of price response and the response appears to be concentrated among large firms. No evidence of significant trading response is found for large firms, except for the multi-day period examined. Extending the analysis on partition sample -- large versus small firms, I find that small firms' trade on a relatively small portion of earnings restatement information that tend to cluster around pre-announcement period. Overall, the results indicate that investors do not appear to be confused about accounting restatements, and in fact use information about earnings restatement in their valuation of the affected firms' equity.

Download or read book The Association Between Changes in Accounting Estimates and Accounting Restatements written by Philip Beaulieu and published by . This book was released on 2018 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the relationship between changes in accounting estimates and subsequent restatements. Theory suggests that depending on the underlying reason for an estimate change, this relationship can be either negative (for changes in estimates made in response to new developments or management having obtaining new information) or positive (for changes in accounting estimates made with an objective of managing earnings or changes that are not reliably estimated and are poorly audited). We hypothesize and find a positive relationship between changes in estimates and restatements. There is also support for the prediction that the presence of a change in accounting estimate(s) is associated with an increased likelihood of subsequent restatement to correct intentional misstatement. The findings of the study are of interest to accounting academics, regulators, and audit practitioners.

Download or read book Essays on Accounting Restatements written by Menghistu Mulugeta Sallehu and published by . This book was released on 2011 with total page 356 pages. Available in PDF, EPUB and Kindle. Book excerpt: