The Chinese experience: The impact of financial restatements on firm value and its implications on the investigatory practices of regulators

Chen Ma, Michael Kraten, Junrui Zhang and Peng Wang

Research in Accounting Regulation, 2014, vol. 26, issue 1, 1-11

Abstract: We examine the relationship between restatements of prior period financial results and firm value in China. This relationship is relevant to the millions of global investors who purchase Chinese equity securities because Chinese regulatory authorities must focus on the restatement events that, in their judgment, most warrant investigation. We recommend that they focus their attention on restatement announcements (and the firms that announce them) that possess the characteristics that most impact firm value.

Keywords: Core account restatements; Financial restatements; Firm value; Prior period adjustments; Regulatory practices (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:26:y:2014:i:1:p:1-11

DOI: 10.1016/j.racreg.2014.02.001

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