In this paper, we investigate the consequences that auditors and their clients face when earnings announced in an unaudited earnings release are subsequently revised, presumably as a result of year-end audit procedures, so that earnings as reported in the 10-K differ from earnings as previously...

This paper draws on two distinct literatures ndash; one that investigates the impact of accounting restatements and another that investigates the trading behavior of short sellers ndash; to further our understanding of how sophisticated investors process and respond to news about accounting...

This study investigates determinants of restatement disclosure choices and the related stock price reactions in the post-Sarbanes-Oxley era, a period characterized by high restatement volume and mixed signals from regulators about restatement disclosure requirements. Holding the materiality of...

We provide evidence suggesting that managers use financial statement misstatements which improve reported results to facilitate acquisitions. Specifically, we find that firms misstating their financial statements are more likely to make stock-based acquisitions, but not cash-based acquisitions,...