..., as linked in the text. Editor’s note: Accepted by Joseph H. Schroeder, under the Senior Editorship of W. Robert Knechel. 06 12 2021 29 05 2024 04 06 2024 2024 auditor turnover auditor human capital audit quality audit quality indicators financial restatements...

...Amir Amel-Zadeh; Yuan Zhang ABSTRACT This paper investigates whether and how financial restatements affect the market for corporate control. We show that firms that recently filed financial restatements are significantly less likely to become takeover targets than a propensity score matched sample...

... with previous financial restatements had the largest economic gains, suggesting that a clawback policy can be effective at curtailing incentives for earnings manipulation. Analysis of the bid-ask spread provides evidence that these provisions contribute to reducing financial reporting risk for restating firms...