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Restatements hit market less under Sarb-Ox -study

Restatements hit market less under Sarb-Ox -study

by Toby Lucich on October 13, 2007

Market reaction is less volatile following company announcements they will restate financial results since the Sarbanes-Oxley corporate reform law was enacted, according to a new paper authored by two Public Company Accounting Oversight Board (PCAOB) economists.

That suggests investors believe restatement announcements convey more timely and higher quality information, leaving them with less uncertainty about companies that must restate their financial data, said the report, which was released late Thursday.

The study will be discussed on Oct. 18 when a PCAOB advisory group meets.

Restatements hit market less under Sarb-Ox -study

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