Reaction of Capital Markets on the Quality of Financial Information after Financial Statements Restatement in Companies Listed on Tehran Stock Exchange

Document Type : Original Article

Authors

1 Assistant Prof, Faculty of Industrial Engineering and Management, Shahroud University of Technology, Shahroud, Iran

2 Assistant Professor of Financial Management, Department of Management, Economics and Accounting, Faculty of Humanities and Social Sciences, Golestan University, Gorgan, Iran.

3 Assistant Prof of Economics, Department of Management and Economics, Faculty of Humanities and Social Sciences, Golestan University, Gorgan, Iran.

Abstract

In this research the status of the quality of financial information in the period after the financial statements restatement has been studied. Also, the reaction of the capital market to the restatement and the effect of this reaction on the quality of financial information after the financial statements restatement have been studied. In this regard, the information of 86 companies admitted to the Tehran Stock Exchange was extracted in the period of 2012 to 2022. The results of investigations using multivariate regression and combined data analysis method show that financial statements restatement has an effect on improving the quality of financial information. Other results show that the negative reaction of the capital market to the restatement, has not affected the relationship between the financial statements restatement and the quality of financial information. Therefore investors are advised to consider the occurrence of financial statements restatement as a sign of the quality of the company's financial information which has directly had significant effects on reducing the cost of capital and company risk and increasing the liquidity of shares and Avoid investing in companies with repeated financial statements restatement due to its negative consequences on the quality of their financial information.

Keywords

Main Subjects

Smiley face

 

References

آریاپناه، محمد؛ امری اسرمی، محمد و جلالی، فاطمه. (1401). اثر تنوع جنسیتی در کمیته حسابرسی و کارایی کنترل‌های داخلی بر کیفیت گزارشگری مالی و اعتبار تجاری، پژوهش­های راهبردی بودجه و مالی، 4(1): 37-60.
آرین تبار، احمد؛ فیل سرایی، مهدی و بختیاری، فائزه. (1401). بررسی نقش عدم شفافیت اطلاعات مالی و کیفیت حسابرسی بر رابطه بین مالیات تهاجمی و همزمانی قیمت سهام در شرکت های پذیرفته شده در بورس اوراق بهادار، پژوهش های راهبردی بودجه و مالی، 3(4): 89 -127.
اعتمادی، حسین؛ ساری، محمد علی و جوان­ قلندری، موسی. (۱۳۹۷). احتمال تجدید ارائه صورت‌های ­مالی با تأکید بر نقش ­حسابرس، پژوهش­های حسابداری مالی و حسابرسی، ۱۰(۳۷): ۸۵-۱۰۶.
چناری، حسن و دارابی، رویا. (1400). پیامد اقتصادی تجدید ارائه‌ صورت‌های مالی، تحقیقات حسابداری و حسابرسی، 13(49): 31-44.
خواجوی، شکراله؛ نصیری فر، هاشم و قدیریان آرانی، محمد حسین. (1400). ارتباطات سیاسی و کیفیت اطلاعات حسابداری: شواهدی از تجدید ارائه صورت‌های مالی، مطالعات تجربی حسابداری مالی، 18(71): 1-32.
راعی، رضا، تلنگی، احمد. (۱۳۸۳). مدیریت سرمایه­گذاری پیشرفته، سازمان مطالعه و تدوین کتب علوم انسانی (سمت)، تهران، ایران.
کمیته فنی سازمان حسابرسی. (1386). اصول و ضوابط حسابداری و حسابرسی استانداردهای حسابداری، تهران، سازمان حسابرسی، نشریه 160.
مهرانی، ساسان و رحیمی پور، اکبر. (1402). طراحی مدل­های شناسایی احتمال تجدید ارائه صورت­های مالی بر مبنای مدل دستکاری سود بنیش، پژوهش­های راهبردی بودجه و مالی، 4(2): 11-43.
Ariapanah, M., Amri-Asrami, M., & Jalali, F. (2023). The effect of gender diversity in the audit committee and the efficiency of internal controls on the quality of financial reporting and business credit. Scientific Journal of Budget and Finance Strategic Research, 4(1), 37-60. [In Persian].
Arian Tabar, A., Filsaraei, M., & Bakhtiari, F. (2022). Examining the role of lack of transparency of financial information and audit quality on the relationship between aggressive taxation and stock price concurrency. Scientific Journal of Budget and Finance Strategic Research, 3(4), 89-127. [In Persian].
Aviantara, R. (2023). Scoring the financial distress and the financial statement fraud of Garuda Indonesia with «DDCC» as the financial solutions. Journal of Modelling in Management, 18(1), 1-16.
Chenari, H., & Darabi, R. (2021). The Economic Consequences of Financial Restatements. Accounting and Auditing Research, 13(49), 31-44. doi: 10.22034/iaar.2021.131566. [In Persian].
Etemadi, H., Sari, M-A & Javani ghalandari, M.(2018). Financial Accounting and Auditing Research, 10(37), 85-106. [In Persian].
Hasnan, S., Mohd Razali, M. H., & Mohamed Hussain, A. R. (2020). The effect of corporate governance and firm-specific characteristics on the incidence of financial restatement, Journal of Financial Crime, 28(1), 244-267.
Herly, M. Bartholdy, J. Thinggaard, F. (2016). Do Restatements Break Bad Habits? Evidence of Earnings Quality Following Restatements, Department of Economics and Business Economics, Aarhus University.
Huang, M. Jenkins, N. T. Luo, L. & Xie, H. (2018). Restatements, Disaggregation Quality and Market Reactions, Working paper, University of Kansas.
Khajavi, S., Nasirifar, H., & Ghadirian-Arani, M. (2021). Political Connections and Accounting Information Quality: Evidence from Financial Restatement. Empirical Studies in Financial Accounting, 18(71), 1-32. doi: 10.22054/qjma.2021.49457.2113. [In Persian].
Kusmeylinda, K., Wahidahwati, W., & Mildawati, T. (2021). Analysis of Factors Affecting the Restatement of Financial Statements, Journal of Asian Multicultural Research for Economy and Management Study, 2(4), 45-55.
Mardessi, S. (2022). Audit committee and financial reporting quality: the moderating effect of audit quality, Journal of Financial Crime, 29(1), 368-388.
Mao, Y. (2018). Financial restatement research literature review, Modern Economy, 9(12), 2092.
Mehrani, S., & Rahimipoor, A. (2023). Designing of models Probability identification Restatement of Financial Statements Based on Benish profit manipulation model. Scientific Journal of Budget and Finance Strategic Research, 4(2), 11-43. [In Persian].
Oanha, N. T. K., Van Dinh, N., & Van, N. C. (2021). Associations of Board Size, Audit Reputation, and Debt with Financial Restatement: Evidence in Vietnam, In International Conference on Emerging Challenges, Business Transformation and Circular Economy, 104-112.
Raei, R & Talangi, A. (2008). Advanced investment management. Samt public Tehran, Iran. [In Persian].
Technical committee of the auditing organization. (2011). Principles and rules of accounting and auditing of accounting standards, Tehran, Audit Organization, publication 160. [In Persian].
Wijayati, F. L. (2023). Financial Restatement on Manufacture Sector Company Reviewed from The Aspect of Corporate Governance and Company-Specific Characteristics, Accounting and Finance Studies, 3(1), 48-62.
Wijaya, F. (2022). Relevance of Value and Determinants of Restatement Financial Statements, Journal Eduvest, Journal of Universal Studies, 2(9), doi: https://doi.org/10.59188/eduvest.v2i9.583.

Files

History

  • Receive Date: 19 October 2023
  • Revise Date: 15 December 2023
  • Accept Date: 18 December 2023

Share

How to cite

Statistics