Designing Discipline: How does the market react to accounting restatements in industries with significant intangible value?
2018
Loading...
View/Download File
Persistent link to this item
Statistics
View StatisticsJournal Title
Journal ISSN
Volume Title
Title
Designing Discipline: How does the market react to accounting restatements in industries with significant intangible value?
Authors
Published Date
2018
Publisher
Type
Thesis or Dissertation
Abstract
Mandatory financial reporting for public companies is intended to increase transparency
for shareholders. If a business can raise capital from the public, it was decided that the public had
a right to information about the operations of the business they were investing in. However, the
creation of mandatory financial reporting was not an absolute solution. Since then, there have
been multiple instances of accounting mistakes and fraud that require an accounting restatement.
Such market events yield a market response measured by stock price changes. Market responses
are commonly researched, but they have not been considered among different industries. This
study intends to address a current gap in research by examining the financial market reaction to
significant market events among firms with notable intangible value. I accomplish this with an
event study following accounting restatement dates. This thesis examines the hypothesis that the
financial market is significantly less reactive to restatements in industries with significant
intangible value. I use statistical analysis tools including a two-sample t-test, a regression model,
a correlation analysis, and a quintile analysis. The research results do not yield a significant
difference to support the hypothesis, but compelling motivation for future research was
uncovered.
Key Words: Creative industry, intangible assets, accounting restatements, market events
Description
Related to
Replaces
License
Collections
Series/Report Number
Funding information
Isbn identifier
Doi identifier
Previously Published Citation
Suggested citation
Haworth, Aleah. (2018). Designing Discipline: How does the market react to accounting restatements in industries with significant intangible value?. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/208561.
Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.