MARKET REACTION AND MULTIPLE FINANCIAL RESTATMENTS

Raad Jassim ； Duong Nguyen ； Hoang Nguyen

《Advances in Quantitative Analysis of Finance and Accounting》 15期 (2017/12) Pp. 313-342

https://doi.org/10.6293/AQAFA.201712_15.0011

摘要

This paper examines the market reaction and information asymmetry to the companies with only one restatement and the companies with multiple financial restatements. While there is a significantly negative market reaction as measured by the average cumulative abnormal return to both group of companies, the information asymmetry as measured by bid-ask spreads and other microstructure variables seems to be lower for the companies with multiple financial restatements. For these multiple restatement companies, we find the market reacts more negatively and creates more information asymmetry in the first restatement than in the later restatements.

關鍵字

Multiple Financial Restatements ； Market Reaction ； Information Asymmetry

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