In this article, we examine whether restating firms operating in environmentally sensible industries improve environmental performance in the post-restatement period in order to recover from a loss in reputation. Using a sample of firms listed in 12 IFRS-adopting countries we find that, after accounting restatement, restating firms engage more in environmental responsible practices. We also highlight that the increase in environmental performance is not significantly larger for firms incurred in more severe accounting restatement. In the end, we investigate whether the improved environmental performance influences analyst coverage. The results indicate that analyst following only increases for restating firms taking more environmental responsible activities, suggesting that firms’ efforts to regain their reputation are valued in the aftermath of restatement event.
|Titolo:||HOW FIRMS RECOVER FROM A LOSS IN REPUTATION CAUSED BY ACCOUNTING RESTATEMENT: A STUDY OF ENVIRONMENTAL PERFORMANCE IN POLLUTING INDUSTRIES|
|Data di pubblicazione:||2017|
|Appare nelle tipologie:||4.1 Contributo in Atti di convegno|