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Investor reaction to accounting misstatements under IFRS: Australian evidence

Goodwin, John and Atılgan, Yiğit and Şimşir, Şerif Aziz and Ahmed, Kamran (2018) Investor reaction to accounting misstatements under IFRS: Australian evidence. (Accepted/In Press)

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Abstract

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 misstatement, reactions of between -2.3% and -2.8% (- 1.5% and -1.7%) for misstatements that reduce prior-period earnings or equity (affect revenue), and reactions of between -1.3% and -2.7% for non-stealth misstatements. Investor reactions are more negative for non-stealth misstatements that reduce prior period earnings or equity than to stealth misstatements.

Item Type:Article
Subjects:H Social Sciences > HG Finance > HG1706-1708 Accounting. Bookkeeping
ID Code:35543
Deposited By:Şerif Aziz Şimşir
Deposited On:07 Aug 2018 22:18
Last Modified:07 Aug 2018 22:18

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