|
|
|
|
||||
|
||||
Accounting Restatements and Information RiskTodd D. KravetUniversity of Texas at Dallas - School of Management Terry J. ShevlinUniversity of California-Irvine April 22, 2009 Review of Accounting Studies, Forthcoming Abstract: 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.
Number of Pages in PDF File: 50 Keywords: restatements, information risk, earnings quality, cost of capital JEL Classification: M41, G12 Accepted Paper SeriesDate posted: November 9, 2006 ; Last revised: March 4, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo4 in 0.797 seconds
