Fair value and economic consequences of financial restatements

Hua-Wei Solomon Huang, Zhi-Yuan Andy Feng and Angie Abdel Zaher

Finance Research Letters, 2020, vol. 34, issue C

Abstract: This study finds that negative market reactions to restatement announcements are more severe when firms disclose higher ratios of Level 3 fair values. In addition, this negative association is stronger during financial crisis periods, showing that market investors prefer conservative fair values.

Keywords: SFAS No. 157; Financial restatements; Market reactions; Financial crisis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319300169

DOI: 10.1016/j.frl.2019.07.017

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