Do Personnel Stability, Family Business and Auditor Influence Financial Restatement?
This paper explores how the interaction of four conditions (chief director stability, top management stability, family business and firms with big 4 auditor) results in restatements. This paper uses qualitative comparative analysis (QCA), which is a relatively new method applied in accounting resea...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2016-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/1570 |
| Summary: | This paper explores how the interaction of four conditions (chief director stability, top management stability, family business and firms with big 4 auditor) results in restatements. This paper uses qualitative comparative analysis (QCA), which is a relatively new method applied in accounting research to examine the cause of the restatements systematically. The results show firms not audited by Big 4 and family business are more possible to restate the financial reports due to accounting type errors. The results also imply that non family business audited by Big 4 or family controlled firms not audited by Big4 have more chance to restate the financial reports due to material accounting errors. Last family business not audited by Big 4 has more chance to restate the financial reports voluntarily.
Keywords: Personnel Stability; Qualitative Comparative Analysis; Restatement
JEL Classifications: M40; M41
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| ISSN: | 2146-4138 |