Title :
Market reactions to financial restatements - evidence from Chinese stock market
Author :
Zhu, Zhaohui ; Hu, Chengwei
Author_Institution :
Sch. of Accounting, Zhejiang Gongshang Univ., Hangzhou, China
Abstract :
The financial statements of a listed firm disclose the company´s financial position, operating results and cash flow information, which is an important means for investors to analyze the firm. But in recent years, financial restatements are becoming frequent. Basing on 88 Shanghai and Shenzhen A-share listed firms, which announced annual financial reports restatements during 2006-2008 periods, this paper tests the share price within a short time window changes before and after the restatements announcement through event study. The results show that the financial restatements have a significant negative impact on stock prices within a short time window, which indicating that the market can capture the new information released by restatements announcement.
Keywords :
pricing; share prices; stock markets; Chinese stock market; cash flow information; company financial position; financial report; financial restatement; market reaction; share price; stock price; Companies; Fluctuations; IEEE news; Indexes; Security; Stock markets; Financial restatements; cumulative abnormal return; event study method; market reaction;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4244-8501-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2010.5674247
