Huang, Rongbing; Shangguan, Zhaoyun; Vasudevan, Gopala - In: International Journal of Accounting and Finance 1 (2009) 4, pp. 375-394
We examine whether firms' earnings exhibit higher degrees of conservatism after restating their financial statements. Conservatism is defined as more timely recognition of gains than losses in earnings (Basu, 1997). Using a sample of restatements derived from the Government Accountability Office...