The Effect of Accounting Restatements on Earnings Revisions and the Estimated Cost of Capital

By Paul Hribar, N. T. Jenkins. 2004

578 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/9a5c0c81714d7a1320dd22006a261f87f49270fb

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Citations in the corpus

Disclosure and the cost of capital: what do we know? (2006, background): “…the concept of disclosure to include other attributes of information such as earnings quality (e.g. Francis, LaFond, Olsson and Schipper, 2004, Hribar and Jenkins, 2004 and Mikhail et al., 2004), and the precision, dissemination, and composition of the information set (Botosan and Plumlee,…”
Accounting Restatements, Governance and Municipal Debt Financing (2013, unknown): “Prior literature finds corporate restatements are associated with negative stock price reactions (Palmrose et al. 2004), increases in the cost of equity capital (Hribar and Jenkins 2004), and higher debt costs (Graham et al. 2008).”
The Contagion Effects of Accounting Restatements (2008, unknown): “6 restatements often precipitate top executive turnover (Desai, Hogan and Wilkins 2006) and are followed by shareholder litigation against the company, its management and board of directors, and its outside auditors (Griffin, 2003; Palmrose and Scholz 2004), by a decline in sell-side analysts’ conse”
A re-examination of analysts’ superiority over time-series forecasts of annual earnings (2012, unknown): “…valuation and cost of capital literatures (for example, Frankel and Lee 1998; Claus and Thomas 2001; Gebhardt et al. 2001; Easton et al. 2002; and Hribar and Jenkins 2004), analysts’ forecasts are often used to proxy for longer-horizon earnings expectations, such as 2- to 5-year-ahead earnings.3…”
The Implied Cost of Capital: A New Approach (2012, unknown): “, Gebhardt, Lee, and Swaminathan, 2001; Pástor, Sinha, and Swaminathan, 2007; Chava and Purnanandam, 2009; Chen and Zhao, 2009) and on issues related to corporate governance and disclosure (e.g., Francis, Khurana, and Pereira, 2005; Hail and Leuz, 2006ab; Hribar and Jenkins, 2004).”
Accounting restatements and information risk (2010, unknown): “Palmrose et al. (2004) and Anderson and Yohn (2002) find that restatements related to revenue recognition are associated with more negative market response than other restatements, but Hribar and Jenkins (2004) do not find significant evidence that core account restatements are associated with a g”
The Impact of the Options Backdating Scandal on Shareholders (2009, background): “20 the cost of capital reaching a uniform conclusion: low quality disclosure increases firms’ cost of capital (Welker, 1995; Botosan, 1997; Healy et al., 1999; Hribar and Jenkins, 2004).”
Shareholder rights, financial disclosure and the cost of equity capital (2006, background): “Specifically, high agency risk is associated with a higher incidence of accounting restatements (GAO, 2002; Agrawal and Chadha, 2003; Wu, 2002; Palmrose et al., 2004), which reduces managers’ credibility and increases the cost of equity capital ( Hribar and Jenkins, 2003 ).”
Evidence on Contagion in Earnings Management (2015, unknown): “and Philippon (2009) and Badertscher, Hribar and Jenkins (2011), among others.”
Conditional conservatism and cost of capital (2011, background): “This pervasiveness is explained 2 See Botosan (1997); Botosan and Plumlee (2002); Battacharya, Daouk, and Welker (2003); Francis et al. (2004, 2005); Hribar and Jenkins (2004); Aboody, Hughes, and Liu (2005); Barth, Konchitchki, and Landsman (2010); Kravet and Shevlin (2007); McInnis (2008);…”
The effect of financial reporting quality on corporate dividend policy (2017, unknown): “Prior research finds that firms with higher quality reporting have both a lower cost of debt (e.g., Francis et al. 2005; Bharath et al. 2008; Graham et al. 2008) and a lower cost of equity (e.g., Dechow et al. 1996; Francis et al. 2004, 2005; Hribar and Jenkins 2004).”
Corporate Investments: Learning from Restatements (2009, unknown): “First, a competitor with lower quality accounting information may have a higher cost of external financing (Hribar and Jenkins [2004], Kravet and Shevlin [2007]), and thus invest less.”
Does corporate social responsibility affect the cost of capital (2011, unknown): “, 2010), and has also been used in event studies that examine cross-listings (Hail and Leuz, 2009) and earnings restatements (Hribar and Jenkins, 2004).”
Earnings Restatements and Differential Timeliness of Accounting Conservatism (2012, unknown): “Restatements result in an increase in the firm's cost of equity capital (Hribar and Jenkins, 2004).”