Abstract

http://ssrn.com/abstract=1317343
 
 

References (286)



 
 

Citations (5)



 


 



Does Company Reputation Matter for Financial Reporting Quality? Evidence from Restatements


Ying Cao


The Chinese University of Hong Kong (CUHK) - School of Accountancy

Linda A. Myers


University of Arkansas

Thomas C. Omer


University of Nebraska at Lincoln - School of Accountancy

July 2011


Abstract:     
In this study, we explore the association between company reputation and the likelihood of a financial statement restatement (i.e., a revealed misstatement). We focus on restatements because they are one of the most visible forms of impaired financial reporting quality, and we suggest that company reputation concerns will influence the reporting process and reduce financial statement misstatements (and ultimately restatements). We proxy for company reputation using measures based on Fortune’s America’s Most Admired Companies List. For a sample of 8,081 observations from 1995 through 2009, we find that companies with higher reputation scores are less likely to misstate their financial statements after controlling for CEO tenure, corporate governance, and audit fees (a proxy for audit effort). In addition, we find that companies with higher reputations have better accruals quality. We also find that company reputation is positively associated with audit fees even after controlling for corporate governance. These results are consistent with company reputation having an important effect on financial reporting quality and with the effect of reputation being distinct from that of corporate governance.

Number of Pages in PDF File: 55

Keywords: corporate reputation, financial reporting quality, restatements, audit fees

JEL Classification: G34, D80, M41, M43, M49

working papers series





Download This Paper

Date posted: December 17, 2008 ; Last revised: June 7, 2011

Suggested Citation

Cao, Ying and Myers, Linda A. and Omer, Thomas C., Does Company Reputation Matter for Financial Reporting Quality? Evidence from Restatements (July 2011). Available at SSRN: http://ssrn.com/abstract=1317343 or http://dx.doi.org/10.2139/ssrn.1317343

Contact Information

Ying Cao
The Chinese University of Hong Kong (CUHK) - School of Accountancy ( email )
Shatin, N.T.
Hong Kong
Linda A. Myers (Contact Author)
University of Arkansas ( email )
Fayetteville, AR 72701
United States
Thomas C. Omer
University of Nebraska at Lincoln - School of Accountancy ( email )
307 College of Business Administration
Lincoln, NE 68588-0488
United States
Feedback to SSRN


Paper statistics
Abstract Views: 2,910
Downloads: 754
Download Rank: 17,699
References:  286
Citations:  5
People who downloaded this paper also downloaded:
1. The Effects of Accounting Restatements on Firm Growth
By Susan Albring, Shawn Huang, ...

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.531 seconds