Download or read book An Empirical Analysis of the Decline in the Information Content of Earnings Following Restatements written by Wendy M. Wilson and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Regulatory officials and market analysts have speculated that the loss of credibility in subsequently reported financial information is a long-lasting consequence of earnings restatements. I measure the information content of earnings using a standard earnings-returns framework over several years surrounding restatements to examine characteristics of the decline in the information content of earnings. Results indicate that although the information content of earnings declines following restatements, the loss is temporary. In particular, the earnings response coefficients for earnings announcements surrounding restatements exhibit a U-shaped pattern in which they are no longer significantly lower in the post-restatement period over an average of four quarters. The extent to which the earnings of restatement firms suffer a loss of information content varies across several dimensions. First, the duration of the loss is greater for firms that restate earnings to correct revenue recognition errors and for restatements that result in a large decline in the stock price at the announcement date. Second, there is not a loss in the information content of earnings for firms that make changes to their financial reporting governance structures following restatements. Overall, the evidence in this paper is consistent with a short-term decline in investor confidence regarding financial reporting following restatements, but shows that suspicion regarding the information loss of post-restatement earnings in the long-term is unwarranted.

Download or read book Is the Decline in the Information Content of Earnings Following Restatements Short Lived written by Xia Chen and published by . This book was released on 2013 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research finds that the decline in the information content of earnings after restatement announcements is short-lived and the earnings response coefficient (ERC) bounces back after three quarters. We re-examine this issue using a more recent and comprehensive sample of restatements. We find that material restatement firms experience a significant decrease in the ERC over a prolonged period - close to three years after restatement announcements. In contrast, other restatement firms experience a decline in the ERC for only one quarter. We further find that among material restatement firms, those that are subject to more credibility concerns and those that do not take prompt actions to improve reporting credibility experience a longer drop in the ERC. Lastly, reconciling with prior research, we find that using a more powerful proxy for material restatements and imposing less restrictive sampling requirements help increase the power of the tests to detect the long-run drop in the ERC.

Download or read book The Information Content of Earnings Following Restatements written by Wendy M. Wilson and published by . This book was released on 2006 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the information content of earnings following restatements of prior period earnings. Results indicate that the information content of earnings announcements declines in periods following a restatement, but that the loss of information content is temporary. In particular, the earnings response coefficients for earnings announcements surrounding a restatement exhibit a U-shaped pattern in which they return to pre-restatement levels over an average of four quarters, suggesting that the market's concern regarding subsequently reported earnings is somewhat transitory. The extent to which the earnings of restatement firms suffer a loss of information content varies across several dimensions. First, the loss of information content is greater for firms that restate earnings to correct revenue recognition errors than it is for other types of restatements. Second, the information content of earnings is significantly lower for firms that do not make changes to their financial reporting governance structure following a restatement relative to firms that initiate governance changes. Overall, the evidence presented in this paper is consistent with a short-term decline in investor confidence regarding financial reporting following restatements, but that recovery typically takes place within four quarters.

Download or read book Proceedings of 2013 4th International Asia Conference on Industrial Engineering and Management Innovation IEMI2013 written by Ershi Qi and published by Springer Science & Business Media. This book was released on 2014-01-16 with total page 1039 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of the 4th International Asia Conference on Industrial Engineering and Management Innovation (IEMI 2013) is to bring together researchers, engineers and practitioners interested in the application of informatics to usher in new advances in the industrial engineering and management fields.

Download or read book Handbook On Business Information Systems written by Angappa Gunasekaran and published by World Scientific. This book was released on 2010-04-27 with total page 961 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook covers the vast field of business information systems, focusing particularly on developing information systems to capture and integrate information technology together with the people and their businesses.Part I of the book, “Health Care Information Systems”, focuses on providing global leadership for the optimal use of health care information technology (IT). It provides knowledge about the best use of information systems for the betterment of health care services. Part II, “Business Process Information Systems”, extends the previous theory in the area of process development by recognizing that improvements in intra-organizational business processes need to be complemented by corresponding improvements in inter-organizational processes. Part III deals with “Industrial Data and Management Systems” and captures the main challenges faced by the industry, such as the changes in the operations paradigm of manufacturing and service organizations. Finally, Part IV, “Evaluation of Business Information Systems”, discusses the empirical investigation into the adoption of systems development methodologies and the security pattern of the business systems along with the mathematical models.

Download or read book Value Relevance of Accounting Information in Capital Markets written by Ojo, Marianne and published by IGI Global. This book was released on 2016-12-12 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: Among banking industries and insurance and security sectors, systemic risk and information uncertainty can generate negative consequences. By developing solutions to address such issues, financial regulation initiatives can be optimized. Value Relevance of Accounting Information in Capital Markets is an essential reference source for the latest scholarly research on the importance of information asymmetries and uncertainties and their effects on the overall regulation of financial industries. Featuring extensive coverage on a wide range of perspectives, such as financial reporting standards, investor confidence, and capital flows, this publication is ideally designed for professionals, accountants, and academics seeking current research on the effects of the underlying elements in investing.

Download or read book Corruption and Fraud in Financial Markets written by Carol Alexander and published by John Wiley & Sons. This book was released on 2022-12-13 with total page 624 pages. Available in PDF, EPUB and Kindle. Book excerpt: Identifying malpractice and misconduct should be top priority for financial risk managers today Corruption and Fraud in Financial Markets identifies potential issues surrounding all types of fraud, misconduct, price/volume manipulation and other forms of malpractice. Chapters cover detection, prevention and regulation of corruption and fraud within different financial markets. Written by experts at the forefront of finance and risk management, this book details the many practices that bring potentially devastating consequences, including insider trading, bribery, false disclosure, frontrunning, options backdating, and improper execution or broker-agency relationships. Informed but corrupt traders manipulate prices in dark pools run by investment banks, using anonymous deals to move prices in their own favour, extracting value from ordinary investors time and time again. Strategies such as wash, ladder and spoofing trades are rife, even on regulated exchanges – and in unregulated cryptocurrency exchanges one can even see these manipulative quotes happening real-time in the limit order book. More generally, financial market misconduct and fraud affects about 15 percent of publicly listed companies each year and the resulting fines can devastate an organisation's budget and initiate a tailspin from which it may never recover. This book gives you a deeper understanding of all these issues to help prevent you and your company from falling victim to unethical practices. Learn about the different types of corruption and fraud and where they may be hiding in your organisation Identify improper relationships and conflicts of interest before they become a problem Understand the regulations surrounding market misconduct, and how they affect your firm Prevent budget-breaking fines and other potentially catastrophic consequences Since the LIBOR scandal, many major banks have been fined billions of dollars for manipulation of prices, exchange rates and interest rates. Headline cases aside, misconduct and fraud is uncomfortably prevalent in a large number of financial firms; it can exist in a wide variety of forms, with practices in multiple departments, making self-governance complex. Corruption and Fraud in Financial Markets is a comprehensive guide to identifying and stopping potential problems before they reach the level of finable misconduct.

Download or read book The Effect of Restatement Detection Speed on Reporting Credibility written by Mark Hirschey and published by . This book was released on 2013 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: A primary goal of the regulatory reforms enacted around the implementation of the Sarbanes-Oxley Act (SOX) was to improve the credibility of financial reporting. While earnings restatements resulting from accounting issues damaged investor trust prior to the implementation of SOX, we hypothesize that quicker detection of restatements in the post-SOX era should dampen investors' skepticism that accounting problems will have long-lasting effects on reporting credibility. This study documents that irregularity-related restatements were detected more quickly after SOX, which is consistent with greater attention paid to reporting quality and higher levels of audit scrutiny. The results also show that investors have modest credibility concerns regarding firms that announced irregularity-related restatements in the post-SOX era, as the decline in the information content of earnings is short-lived and contagion effects for industry-peer firms are limited. However, this study shows that changes in reporting credibility are influenced by how quickly restatements are discovered and disclosed, as the adverse credibility effects are confined to accounting irregularities that have lengthy detection periods. The evidence from this study highlights the importance of monitoring mechanisms for discovering and resolving accounting irregularities quickly, as the market does not seem to have significant suspicions about ongoing reporting credibility for such firms.

Download or read book Business and the Ethical Implications of Technology written by Kirsten Martin and published by Springer Nature. This book was released on 2022-12-11 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on how firms should engage ethical choices in developing and deploying digital technologies. Digital technologies are devices that rely on rapidly accelerating digital sensing, storage, and transmission capabilities to intervene in human processes. While the ethics of technology is analyzed across disciplines from science and technology studies (STS), engineering, computer science, critical management studies, and law, less attention is paid to the role that firms and managers play in the design, development, and dissemination of technology across communities and within their firm. This book covers the topic from three angles. First, it illuminates diverse facets of the intersection of technology and business ethics. Second, it uses themes to explore what business ethics offers to the study of technology and, third, what technology studies offers to the field of business ethics. Each field brings expertise that, together, improves our understanding of the ethical implications of technology. Chapter “A Micro-ethnographic Study of Big Data-Based Innovation in the Financial Services Sector: Governance, Ethics and Organisational Practices", chapter ”The Challenges of Algorithm-Based HR Decision-Making for Personal Integrity" and chapter “Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle" are available open access under a Creative Commons Attribution 4.0 International license via link.springer.com.

Download or read book A Re examination of Accruals Quality Following Restatements written by Marie Herly and published by . This book was released on 2019 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical research from the first years following SOX suggests that firms improve accruals quality following restatements, but both the number and materiality of restatements have declined since then. This decline may affect firms' responses to restatements and hence we re-examine whether restatements are associated with subsequent improvements in accruals quality in a more recent sample. This paper uses a robust multivariate difference in- difference research design to compare the changes in accruals quality of firms restating between 2000 and 2014 with that of a control group matched with propensity score matching. 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 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. This paper hence suggests that firms' responses to restatements have changed concurrently with the trend of fewer and less material restatements in recent years.

Download or read book Earnings Management written by Joshua Ronen and published by Springer Science & Business Media. This book was released on 2008-08-06 with total page 587 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?

Download or read book Earnings Management written by Thomas E. McKee and published by Thomson South-Western. This book was released on 2005 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: Learn how to legally manage your earnings with EARNINGS MANAGEMENT! This finance text demystifies earnings management and provides you with 28 reasonable and legal techniques. Read this text and you will gain valuable knowledge about earning management concepts and tools and gain insight into the management decisions that can shape financial statements and the underlying quality of the earnings.

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Download or read book Blank Sheet Music Notebook written by Mireya Bates Music and published by Independently Published. This book was released on 2019-04-15 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Blank Sheet Music - Composition Notebook 109 Pages of Stave - Music Manuscript Paper Standard. For Music Instruction, Study & Songwriting. Durable Matte Cover To Protect Your Book. For Piano, Ukelele, Mandolin and other musical instruments Measures 8.5"x11" Large

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 The End of Accounting and the Path Forward for Investors and Managers written by Baruch Lev and published by John Wiley & Sons. This book was released on 2016-06-14 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: An innovative new valuation framework with truly useful economic indicators The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution—the Value Creation Report—and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making. While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making. Discover a new, comprehensive system of economic indicators Focus on strategic, value-creating resources in company valuation Learn how traditional financial documents are quickly losing their utility Find a path forward with actionable, up-to-date information Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.

Download or read book Corporate Reputation written by Michael L. Barnett and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: