Restatement Announcements: Sincerity Analysis Through Information Manipulation Theory

Posted: 19 Jan 2012 Last revised: 30 Jan 2020

See all articles by Nourhene BenYoussef

Nourhene BenYoussef

Université de Sherbrooke - Faculty of Administration

Gaetan Breton

University du Quebec at Montreal

Date Written: January 15, 2016

Abstract

This study explore whether publicly held companies manipulate the restatement announcement arising from material errors and/or fraud. It analyzes the information provided in the press and in the 8-Ks (8K_PR) by applying Information Manipulation Theory. Results indicate that companies manipulating the quality and the timing of information released in the 8K_PR related to restatement are more likely to mislead investors. Precisely, we find that companies disclosing inaccurate information in the 8K_PR and delaying releasing the restated earnings are more likely to occur among fraudulent companies.

Keywords: Restatement Announcement, Press Release, Form 8-K, Deception, Information Manipulation Theory

JEL Classification: M41

Suggested Citation

BenYoussef, Nourhene and Breton, Gaetan, Restatement Announcements: Sincerity Analysis Through Information Manipulation Theory (January 15, 2016). Available at SSRN: https://ssrn.com/abstract=1985680 or http://dx.doi.org/10.2139/ssrn.1985680

Nourhene BenYoussef (Contact Author)

Université de Sherbrooke - Faculty of Administration ( email )

Sherbrooke, Québec J1K 2R1
Canada

Gaetan Breton

University du Quebec at Montreal ( email )

P.O. Box 8888, Downtown Station
Succursale Centre Ville Department of Accounting Sciences
Montreal, Quebec H3C 3P8
Canada
514-987-3000 (Phone)
514-987-6629 (Fax)

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