The Impact of Accounting Restatements on Earnings Forecast Accuracy
碩士 === 國立臺北大學 === 會計學系 === 99 === This study investigates the trends in financial statement restatements since 2002 and analyzes the impact of accounting restatements on earnings forecast accuracy. We use analyst forecasts to proxy for investor beliefs and examine whether restatements increase uncer...
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| Format: | Others |
| Language: | zh-TW |
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2010
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| Online Access: | http://ndltd.ncl.edu.tw/handle/15078658289026132899 |
| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 99 === This study investigates the trends in financial statement restatements since 2002 and analyzes the impact of accounting restatements on earnings forecast accuracy. We use analyst forecasts to proxy for investor beliefs and examine whether restatements increase uncertainty about the credibility and competence of the managers that are associated with the management earnings forecast. We examine how changes in the earnings forecast vary depending on the reason for restatements and the materiality of restatements.
This study investigates a large sample of financial statement restatements over the period 2002-2009. Financial statement restatements occur most frequently in 2009, and the lowest-quality of financial statement restatements are in 2008, as some companies restated the same financial statement more than once. We find that the accuracy of analyst earnings forecasts enhance significantly following the restatement. On the other hand, we find a significant positive relation between the absolute value of the change of firm’s profitability and analyst earnings forecast accuracy following restatements. Our paper contributes to the knowledge on how restatements affect the earnings forecast accuracy.
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