Spillover effects of restatements on the financial reporting behavior of board-interlocked firms

• Main Authors: CHEN, Chih-Ying, GOH, Beng Wee, LIN, Yu Chen, WU, Guan Syun
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/990
• Institution: Singapore Management University

This study examines the spillover effects of restatements on the financial reporting behavior of firms that share common directors with the restating firms (“interlocked firms”). Using a sample of restating firms, we find that restatements trigger investors’ concerns over the financial reporting amo...