With the continuing phenomena of earnings restatements and the extensive use of earnings as a component of forecasting future operating performance, it is important to determine if such restatements fundamentally alter the predictive ability of firms' earnings. This paper investigates whether...

Purpose – The purpose of this paper is to investigate whether earnings restatements have a larger effect on the earnings quality (proxied by persistence) of restating firms relative to similar non‐restating firms and if restated earnings are more persistent than the originally reported...