Restatement Announcements: Sincerity Analysis Through Information Manipulation Theory

41 Pages Posted: 22 Jan 2012 Last revised: 17 Mar 2013

See all articles by Nourhene BenYoussef

Nourhene BenYoussef

University of Regina

Gaetan Breton

University du Quebec at Montreal

Multiple version iconThere are 2 versions of this paper

Date Written: January 20, 2012

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 20, 2012). CAAA Annual Conference 2012. Available at SSRN: https://ssrn.com/abstract=1989214 or http://dx.doi.org/10.2139/ssrn.1989214

Nourhene BenYoussef (Contact Author)

University of Regina ( email )

3737 Wascana Parkway
Regina, Saskatchewan S4S OA2 S4S 0A1
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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