Reply to Karpoff et al. (2012), 'A Critical Analysis of Databases Used in Financial Misconduct Research'
Ave Maria University
August 8, 2012
Karpoff et al. allege that four important sources of information for accounting research, including the Audit Analytics Restatements Database, are afflicted by systematic false positives, false negatives, duplicate records, and inaccurate dates. These allegations lack any empirical support. It is shown that these allegations are based instead upon a misleading abuse of language and crude misunderstandings of research methodology.
Number of Pages in PDF File: 14
Keywords: Restatements, Audit Analytics, Financial Misconduct, Fraud
Date posted: August 10, 2012