Accounting restatements and external financing choices

• Main Authors: CHEN, Xia, CHENG, Qiang, Lo, Alvis
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: earnings restatements; external financing; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/821
• Institution: Singapore Management University

There is little research on how accounting information quality affects firms’ external financing choices. In this paper, we use accounting restatement as a proxy for the reduced credibility of accounting information and investigate how restatement affects a firm’s external financing choices. We find...