A good number of controllers, financial analysts, accountants, and auditors don't completely trust the accuracy of their company's financial data.
Share prices fall unrealistically low around the time of restatement announcements but then show abnormal positive returns over the longer term.
An internal investigation concludes that the company incorrectly recognized nonmonetary transactions as revenue.
But are they doing so just because the dollar amounts involved are not material? Research suggests another, less-wholesome motivation.
Counterintuitively, corrections of misreported financials actually prompt peers to imitate the misreporting, a study finds.
The call is motivated by a steep rise in the percentage of financial restatements attributable to cash-flow errors.
