Faculty of Business Administration Speaker Series

Dr. Nourhene Ben Youssef will present “Lie to us: Restatement Announcements” Abstract: Lying, confusing, withholding key information, and/or delaying the release of pertinent explanations are manipulation techniques potentially used by companies to mislead investors. This paper explores whether and why publicly held companies manipulate restatement announcements. Merging accounting literature with Information Manipulation Theory, we developed a disclosure score encompassing the quantity, the quality, the manner and the timing of restatement information released in the Form 8-K and in the press releases (8K_PRs). Based on this score, we found misleading companies tend to do so by withholding critical information (quantity), disclosing inaccurate information (quality) in their 8K_PRs. To understand the reasons companies mislead investors, our findings suggest that some restatement characteristics affect the likelihood of manipulating restatement information in 8K_PRs.

More information at: http://www.uregina.ca/events/faculty-of-business-administration-speaker-series-3