The Ramifications of Restatements
Outside board members fear the legal and financial consequences they may face as a result of financial reporting failures. However, recent research suggests that outside directors of companies issuing earnings restatements are more likely to suffer a blow to their reputations and employability. When companies restate earnings, outside directors tend to lose board positions with both the restating companies and other companies. The losses are … [ Read more ]
Content: Article | Author: Suraj Srinivasan | Source: Capital Ideas | Subject: Corporate Governance
Disclosure Practices of Foreign Companies Interacting with U.S. Markets
Khanna, Palepu, and Srinivasan examine the relatively new S&P Transparency and Disclosure scores for 466 firms from Asian-Pacific countries. Consistent with theory, they find that the more the interaction with US firms, the more transparent the firm’s disclosure practices. Specifically they find “a positive association between these disclosure scores and the following types of market interactions: business operations in the US, US listing, … [ Read more ]
Content: Article | Authors: Krishna Palepu, Suraj Srinivasan, Tarun Khanna | Source: Social Science Research Network (SSRN) | Subjects: Finance, International