Situational and organizational influences on transparency following financial restatements

This study explores the influence of situational and organizational factors on transparency regarding financial restatements. It is predicted that situational factors related to the severity of a restatement will influence transparency about the event and that an organization’s stakeholder orientati...

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Autores principales:	A. J. Guerber, Vikas Anand
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	transparency stakeholder orientation organizational identity orientation financial restatements corporate communications corporate social performance Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/da0ae885105d4e08a9250b82dfb6a0ce
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spelling	oai:doaj.org-article:da0ae885105d4e08a9250b82dfb6a0ce2021-12-02T16:42:10ZSituational and organizational influences on transparency following financial restatements2331-197510.1080/23311975.2019.1598247https://doaj.org/article/da0ae885105d4e08a9250b82dfb6a0ce2019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2019.1598247https://doaj.org/toc/2331-1975This study explores the influence of situational and organizational factors on transparency regarding financial restatements. It is predicted that situational factors related to the severity of a restatement will influence transparency about the event and that an organization’s stakeholder orientation will moderate the relationship between the magnitude of the restatement and transparency. Consistent with predictions, results show a generally positive relationship between the severity of the restatement and transparency in the restatement announcement but also show that firm characteristics such as size, profitability, and stakeholder orientation can alter this relationship. Although transparency following restatements is generally viewed as desirable, we find that among smaller firms transparency is negatively related to the severity of the restatement, and we theorize that this is due to risk aversion triggered by fears that the firm may fail as a result of the restatement. We also find that companies with an individualistic identity orientation alter their transparency following a restatement depending on the severity of the restatement whereas firms which derive organizational identity from relationships with stakeholders or broader groups display a more consistent level of transparency across restatements of varying severity. Taken together, the results of this study provide increased understanding of factors which influence transparency following restatements and suggest that increased attention should be given to the role of organizational characteristics in shaping responses to such events.A. J. GuerberVikas AnandTaylor & Francis Grouparticletransparencystakeholder orientationorganizational identity orientationfinancial restatementscorporate communicationscorporate social performanceBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	transparency stakeholder orientation organizational identity orientation financial restatements corporate communications corporate social performance Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	transparency stakeholder orientation organizational identity orientation financial restatements corporate communications corporate social performance Business HF5001-6182 Management. Industrial management HD28-70 A. J. Guerber Vikas Anand Situational and organizational influences on transparency following financial restatements
description	This study explores the influence of situational and organizational factors on transparency regarding financial restatements. It is predicted that situational factors related to the severity of a restatement will influence transparency about the event and that an organization’s stakeholder orientation will moderate the relationship between the magnitude of the restatement and transparency. Consistent with predictions, results show a generally positive relationship between the severity of the restatement and transparency in the restatement announcement but also show that firm characteristics such as size, profitability, and stakeholder orientation can alter this relationship. Although transparency following restatements is generally viewed as desirable, we find that among smaller firms transparency is negatively related to the severity of the restatement, and we theorize that this is due to risk aversion triggered by fears that the firm may fail as a result of the restatement. We also find that companies with an individualistic identity orientation alter their transparency following a restatement depending on the severity of the restatement whereas firms which derive organizational identity from relationships with stakeholders or broader groups display a more consistent level of transparency across restatements of varying severity. Taken together, the results of this study provide increased understanding of factors which influence transparency following restatements and suggest that increased attention should be given to the role of organizational characteristics in shaping responses to such events.
format	article
author	A. J. Guerber Vikas Anand
author_facet	A. J. Guerber Vikas Anand
author_sort	A. J. Guerber
title	Situational and organizational influences on transparency following financial restatements
title_short	Situational and organizational influences on transparency following financial restatements
title_full	Situational and organizational influences on transparency following financial restatements
title_fullStr	Situational and organizational influences on transparency following financial restatements
title_full_unstemmed	Situational and organizational influences on transparency following financial restatements
title_sort	situational and organizational influences on transparency following financial restatements
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/da0ae885105d4e08a9250b82dfb6a0ce
work_keys_str_mv	AT ajguerber situationalandorganizationalinfluencesontransparencyfollowingfinancialrestatements AT vikasanand situationalandorganizationalinfluencesontransparencyfollowingfinancialrestatements
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Situational and organizational influences on transparency following financial restatements

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