英文摘要 |
This study examines the association between accounting restatements and firms' cost of equity capital. Using the Fama-French three-factors model, we find a significantly positive relationship between the restatement risk factor and the returns after controlling for the market, size, and book-to-market ratio. The results imply that restatements lead to a higher cost of equity capital. In addition, we also find that the greater the difference between the restatement amount and the original amount, the greater the effect on the cost of equity capital. |