We examine the investor reaction to misstatement news for Australian listed firms from 2006 to 2013. We find 4.1% of firm-years have a misstatement and 79% of misstatements are disclosed initially only in the periodic filings (stealth misstatements). We find no investor reaction for the average...

From a survey of the papers published in leading accounting journals in 2014, we find that accounting researchers conduct significance testing almost exclusively at a conventional level of significance, without considering the key factors such as sample size or power of a test. We present...