The Effects of Accounting Restatements on Firms Growth

The studies in Iran and many other countries indicated that a high percentage of companies annually restate their financial statements. This implies that accounting information in many companies is questionable, regarding the feature of reliability. This may harm the relationships between companies...

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Autores principales:	Behzad Kardan, Mahmmod Lari Dashtbayaz, Morteza Mansouri
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2016
Materias:	financial restatements annual adjustments firm growth reliability of financial information Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/edc1834acd834895beb4960811a38139
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spelling	oai:doaj.org-article:edc1834acd834895beb4960811a381392021-11-04T19:50:47ZThe Effects of Accounting Restatements on Firms Growth2008-89142476-292X10.22103/jak.2016.1435https://doaj.org/article/edc1834acd834895beb4960811a381392016-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_1435_50c89aa62ad2f27d299f380e926cd50b.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe studies in Iran and many other countries indicated that a high percentage of companies annually restate their financial statements. This implies that accounting information in many companies is questionable, regarding the feature of reliability. This may harm the relationships between companies and their external clients/stakeholders, especially the investors, and may affect firms' cash flow and, finally, firms' growth. This study investigates the impact of financial restatements on firms' growth. The study takes the Demirguc-Kunt and Maksimovics model, and uses internal growth rate (IG), short-term growth rate (SFG) and maximum sustainable growth rate (SG) to measure firms' growth. The statistical population of this study is the companies listed in the Tehran Stock Exchange, and 66 company-years within a period of 14 years from 1999 to 2012 were examined. The results indicated that financial restatements in announcement time lacks effective informational value and does not have effect on firms' growth.Behzad KardanMahmmod Lari DashtbayazMorteza MansouriShahid Bahonar University of Kermanarticlefinancial restatementsannual adjustmentsfirm growthreliability of financial informationAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 7, Iss 24, Pp 91-111 (2016)
institution	DOAJ
collection	DOAJ
language	FA
topic	financial restatements annual adjustments firm growth reliability of financial information Accounting. Bookkeeping HF5601-5689
spellingShingle	financial restatements annual adjustments firm growth reliability of financial information Accounting. Bookkeeping HF5601-5689 Behzad Kardan Mahmmod Lari Dashtbayaz Morteza Mansouri The Effects of Accounting Restatements on Firms Growth
description	The studies in Iran and many other countries indicated that a high percentage of companies annually restate their financial statements. This implies that accounting information in many companies is questionable, regarding the feature of reliability. This may harm the relationships between companies and their external clients/stakeholders, especially the investors, and may affect firms' cash flow and, finally, firms' growth. This study investigates the impact of financial restatements on firms' growth. The study takes the Demirguc-Kunt and Maksimovics model, and uses internal growth rate (IG), short-term growth rate (SFG) and maximum sustainable growth rate (SG) to measure firms' growth. The statistical population of this study is the companies listed in the Tehran Stock Exchange, and 66 company-years within a period of 14 years from 1999 to 2012 were examined. The results indicated that financial restatements in announcement time lacks effective informational value and does not have effect on firms' growth.
format	article
author	Behzad Kardan Mahmmod Lari Dashtbayaz Morteza Mansouri
author_facet	Behzad Kardan Mahmmod Lari Dashtbayaz Morteza Mansouri
author_sort	Behzad Kardan
title	The Effects of Accounting Restatements on Firms Growth
title_short	The Effects of Accounting Restatements on Firms Growth
title_full	The Effects of Accounting Restatements on Firms Growth
title_fullStr	The Effects of Accounting Restatements on Firms Growth
title_full_unstemmed	The Effects of Accounting Restatements on Firms Growth
title_sort	effects of accounting restatements on firms growth
publisher	Shahid Bahonar University of Kerman
publishDate	2016
url	https://doaj.org/article/edc1834acd834895beb4960811a38139
work_keys_str_mv	AT behzadkardan theeffectsofaccountingrestatementsonfirmsgrowth AT mahmmodlaridashtbayaz theeffectsofaccountingrestatementsonfirmsgrowth AT mortezamansouri theeffectsofaccountingrestatementsonfirmsgrowth AT behzadkardan effectsofaccountingrestatementsonfirmsgrowth AT mahmmodlaridashtbayaz effectsofaccountingrestatementsonfirmsgrowth AT mortezamansouri effectsofaccountingrestatementsonfirmsgrowth
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The Effects of Accounting Restatements on Firms Growth

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