The Relationship between Financial Statement Restatement and Information Risk : The perspective of listed companies in Taiwan
| Autor: | Hsin-Yun Tsai, 蔡欣耘 |
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| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 The study focuses on the effect of accounting restatements on information risk. According to accounting literature, information asymmetry exists in the capital market. When investors are making investments, they would consider the information risk. Would the restated financial statements be reliable and be able to decrease the information asymmetry between companies and investors? This question will be explored and discussed in this research. Our data is sourced from 91 restatements, which announced they did accounting restatements during 1996 to 2006 in Taiwan. Fama and French three-factor model augmented with discretionary and innate information risk is used as our methodology. Through this research, we aim to see the changes in information risk during these processes listed below: (1) after firms announced they did restatements, (2) after firms announced they did restatements to the core accounts, (3) after comparing different restatements initiator and (4) after the firms announced that they did restatements several times. and (5) We also would like to see whether restated firms change information delivery and effect non-restated firms in the same industry or not. The empirical results indicate that the discretionary information risk factors are significantly decrease following a firm’s restatement. Restatements to only on core accounts didn’t generate obvious changes in information risk. The information risk is lower if the restatement is initiated by SEC rather than by management of firm itself. Across all industries, it was found that there is no large change in discretionary information risk after firms restated several times. However, in the electronics industry, electrical machinery, electrical and cable industry, decrease in the discretionary risk was observed for restated firms after they restated several times. Also restated firms did not change information delivery and therefore non-restated firms in the same industry were unaffected. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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