Matches in SemOpenAlex for { <https://semopenalex.org/work/W2113864377> ?p ?o ?g. }
- W2113864377 abstract "We investigate the U.S. stock market's reactions to companies' restatements before and after SOX during a period from 1997 to 2005. This paper is motivated by the inconsistency between the targeted goal of SOX to improve financial reporting quality (proxied by the occurrence of restatements) and the ever-increasing trend in restatements after the passage of SOX. We focus on companies' voluntary restatements because they are more susceptible to the numerous provisions imposed by SOX on top management's misconducts, audit committees, and internal controls over financial reporting. We propose that, in examining the impacts of SOX on the association between restatements and stock prices, it is the years being restated that are of particular importance to the market participants rather than the announcement dates. We base our argument on a game's perspective that, if SOX is effective, taking as a package, in motivating high-quality financial reporting, companies shall be less willing to restate financial statements issued after SOX because market participants may consider such restatements as signals of non-compliance with SOX. In contrast, companies may be more willing to restate financial statements issued before SOX because market participants may regard such restatements as signals of enhanced internal controls and improved corporate governance. Using the years being restated to classify restatements into pre-SOX and post-SOX periods, we find that the well-documented increase in restatements after SOX (which are classified using the announcement dates) disappears. Instead, we observe a sharp decrease in restatements that are announced after SOX restating financial reports issued after SOX. Notably, we find that most of the restatements announced after SOX are made mainly to restate quarterly financials issued before SOX. After controlling for the self-selection bias resulting from voluntary restatements, we further show that market participants can distinguish between post-SOX restatements that restate financial statements issued before and after SOX, and react differently by focusing on different restatement characteristics. Overall, the empirical results support our conjecture that companies and market participants interact strategically toward restatements announced after SOX." @default.
- W2113864377 created "2016-06-24" @default.
- W2113864377 creator A5012172167 @default.
- W2113864377 creator A5060135410 @default.
- W2113864377 date "2008-01-01" @default.
- W2113864377 modified "2023-09-23" @default.
- W2113864377 title "Do Restatements Really Increase Substantially after the Sox? How Does the Stock Market React to Them?" @default.
- W2113864377 cites W1538868226 @default.
- W2113864377 cites W1782058095 @default.
- W2113864377 cites W1906622443 @default.
- W2113864377 cites W1986187321 @default.
- W2113864377 cites W1993981983 @default.
- W2113864377 cites W2002114362 @default.
- W2113864377 cites W2018581816 @default.
- W2113864377 cites W2019840982 @default.
- W2113864377 cites W2021630490 @default.
- W2113864377 cites W2022639256 @default.
- W2113864377 cites W2038155080 @default.
- W2113864377 cites W2049212272 @default.
- W2113864377 cites W2052975086 @default.
- W2113864377 cites W2053191020 @default.
- W2113864377 cites W2065693589 @default.
- W2113864377 cites W2067171170 @default.
- W2113864377 cites W2074933937 @default.
- W2113864377 cites W2075288496 @default.
- W2113864377 cites W2083762608 @default.
- W2113864377 cites W2105609289 @default.
- W2113864377 cites W2109263270 @default.
- W2113864377 cites W2109816150 @default.
- W2113864377 cites W2112159226 @default.
- W2113864377 cites W2113430743 @default.
- W2113864377 cites W2122332521 @default.
- W2113864377 cites W2130811799 @default.
- W2113864377 cites W2132852223 @default.
- W2113864377 cites W2139122730 @default.
- W2113864377 cites W2141765858 @default.
- W2113864377 cites W2152596199 @default.
- W2113864377 cites W2157720167 @default.
- W2113864377 cites W2168323597 @default.
- W2113864377 cites W2268712472 @default.
- W2113864377 cites W2963263835 @default.
- W2113864377 cites W3122489987 @default.
- W2113864377 cites W3122576965 @default.
- W2113864377 cites W3122908404 @default.
- W2113864377 cites W3123182930 @default.
- W2113864377 cites W3123366970 @default.
- W2113864377 cites W3124365414 @default.
- W2113864377 cites W3124627065 @default.
- W2113864377 cites W3125060808 @default.
- W2113864377 cites W3125373908 @default.
- W2113864377 cites W3125717595 @default.
- W2113864377 cites W3125970508 @default.
- W2113864377 cites W4205384207 @default.
- W2113864377 cites W4230336695 @default.
- W2113864377 cites W4235708091 @default.
- W2113864377 cites W4256642400 @default.
- W2113864377 doi "https://doi.org/10.2139/ssrn.1087083" @default.
- W2113864377 hasPublicationYear "2008" @default.
- W2113864377 type Work @default.
- W2113864377 sameAs 2113864377 @default.
- W2113864377 citedByCount "6" @default.
- W2113864377 countsByYear W21138643772012 @default.
- W2113864377 countsByYear W21138643772013 @default.
- W2113864377 countsByYear W21138643772014 @default.
- W2113864377 countsByYear W21138643772015 @default.
- W2113864377 crossrefType "journal-article" @default.
- W2113864377 hasAuthorship W2113864377A5012172167 @default.
- W2113864377 hasAuthorship W2113864377A5060135410 @default.
- W2113864377 hasConcept C144133560 @default.
- W2113864377 hasConcept C162324750 @default.
- W2113864377 hasConcept C166957645 @default.
- W2113864377 hasConcept C204036174 @default.
- W2113864377 hasConcept C2779343474 @default.
- W2113864377 hasConcept C2780299701 @default.
- W2113864377 hasConcept C556758197 @default.
- W2113864377 hasConcept C73283319 @default.
- W2113864377 hasConcept C95457728 @default.
- W2113864377 hasConceptScore W2113864377C144133560 @default.
- W2113864377 hasConceptScore W2113864377C162324750 @default.
- W2113864377 hasConceptScore W2113864377C166957645 @default.
- W2113864377 hasConceptScore W2113864377C204036174 @default.
- W2113864377 hasConceptScore W2113864377C2779343474 @default.
- W2113864377 hasConceptScore W2113864377C2780299701 @default.
- W2113864377 hasConceptScore W2113864377C556758197 @default.
- W2113864377 hasConceptScore W2113864377C73283319 @default.
- W2113864377 hasConceptScore W2113864377C95457728 @default.
- W2113864377 hasLocation W21138643771 @default.
- W2113864377 hasOpenAccess W2113864377 @default.
- W2113864377 hasPrimaryLocation W21138643771 @default.
- W2113864377 hasRelatedWork W1535488707 @default.
- W2113864377 hasRelatedWork W2020710658 @default.
- W2113864377 hasRelatedWork W2093592663 @default.
- W2113864377 hasRelatedWork W2253458693 @default.
- W2113864377 hasRelatedWork W2548181264 @default.
- W2113864377 hasRelatedWork W2985645694 @default.
- W2113864377 hasRelatedWork W3021680565 @default.
- W2113864377 hasRelatedWork W3121593760 @default.
- W2113864377 hasRelatedWork W3123850244 @default.
- W2113864377 hasRelatedWork W3146587679 @default.
- W2113864377 isParatext "false" @default.