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...