The Contagion Effects of Accounting Restatements

By Cristi A. Gleason, N. T. Jenkins, W. Johnson. 2008

453 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b35df69091c0164a233485545e101c6eaeecb6a6

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Christian Leuz
2. Peter D. Wysocki
3. Rodrigo S. Verdi
4. Nemit Shroff
5. Jere R. Francis
6. Catherine Schrand
7. Weili Ge
8. Jeong‐Bon Kim

In Finance

1. Christian Leuz
2. Peter D. Wysocki
3. Rodrigo S. Verdi
4. Paul N. Michas
5. Nemit Shroff
6. Siew Hong Teoh
7. Catherine Schrand
8. Patricia M. Dechow

In Strategy and Management

1. Christian Leuz
2. Peter D. Wysocki
3. Nemit Shroff
4. Rodrigo S. Verdi
5. Weili Ge
6. Jere R. Francis
7. Catherine Schrand
8. S. Roychowdhury

Citations in the corpus

• The Contagion Effect of Low-Quality Audits (2013, background): “Gleason et al. (2008, footnote 8) define contagion as occurring ‘‘ when an adverse event at one firm also conveys negative information about . . . other firms.”
• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Gleason et al. (2008) find that restatement announcements cause stock price declines for non-restatement firms in the same industry.”
• Do Financial Restatements Lead to Auditor Changes (2013, background): “auditor’s independence and audit quality (Gleason et al. 2008).”
• Investor Relations and Information Assimilation (2018, unknown): “restatements most likely to lead to industry contagion (Gleason et al. 2008).”
• Evidence on Contagion in Earnings Management (2015, unknown): “Gleason et al. (2008) and Akhigbe and Madura (2008) document that industry peers suffer a negative stock price reaction when a target firm announces a restatement.”
• Does a Lack of Choice Lead to Lower Quality?: Evidence from Auditor Competition and Client Restatements (2013, unknown): “Given the substantial costs associated with restatements (Palmrose and Scholz 2004; Palmrose et al. 2004; Gleason et al. 2008; Wilson 2008), these relationships clearly are non-trivial.”
• The Spillover Effect of Fraudulent Financial Reporting on Peer Firms’ Investments (2013, unknown): “Gleason et al. (2008) find that accounting restatements that adversely affect restating firms’ shareholder wealth also induce share price declines among non-restating industry peers.”
• The Impact of Religion on Financial Reporting Irregularities (2012, unknown): “2011); (2) shareholder lawsuits related to alleged accounting improprieties (Palmrose and Scholz 2004); and (3) accounting restatements (Gleason et al. 2008).”
• Board Interlocks and Earnings Management Contagion (2013, background): “For example, Gleason, Jenkins, and Johnson (2008) find that a restatement announcement of a peer firm in the same industry triggers a negative spillover effect to non-restating firms.4 A simple analogy to driving serves to highlight the difference in focus of our study from the past literature.”