14 Pages Posted: 10 Aug 2012
Date Written: 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.
Keywords: Restatements, Audit Analytics, Financial Misconduct, Fraud
Suggested Citation: Suggested Citation
Pakaluk, Michael, Reply to Karpoff et al. (2012), 'A Critical Analysis of Databases Used in Financial Misconduct Research' (August 8, 2012). Available at SSRN: https://ssrn.com/abstract=2127460 or http://dx.doi.org/10.2139/ssrn.2127460