scholarly journals Accounting Restatements and External Financing Choices

2012 ◽  
Author(s):  
Xia Chen ◽  
Qiang Cheng ◽  
Alvis K. Lo
Keyword(s):  
External Financing ◽  
Accounting Restatements ◽  
Financing Choices

scholarly journals Accounting Restatements and External Financing Choices*

2012 ◽  
Vol 30 (2) ◽  
pp. 750-779 ◽  
Author(s):  
Xia Chen ◽  
Qiang Cheng ◽  
Alvis K. Lo
Keyword(s):  
External Financing ◽  
Accounting Restatements ◽  
Financing Choices

Does Mandatory Disclosure of Internal Control Weaknesses Affect Corporate Financing Decisions?

2018 ◽  
Vol 35 (3) ◽  
pp. 581-606 ◽  
Author(s):  
Xinghua Gao ◽  
Yonghong Jia ◽  
Siyi Li
Keyword(s):  
Internal Control ◽  
Information Environment ◽  
External Financing ◽  
Equity Financing ◽  
Corporate Financing ◽  
Financing Decisions ◽  
Financing Choices ◽  
Internal Control Weaknesses ◽  
Financing Behavior ◽  
The Impact

We examine the impact of internal control weaknesses (ICWs) on firms’ financing choices and how firms alter their financing behavior after the mandated disclosure of ICWs. We find that, before disclosure, ICW firms tend to seek external financing more than non-ICW firms do and are more likely to use equity financing as opposed to debt. After the disclosure, however, ICW and non-ICW firms exhibit similar financing preferences. In exploring the motivations for equity financing, we find that ICW firms are more prone than non-ICW firms to use the equity proceeds to fund investments and that this penchant disappears post-disclosure. The overall evidence indicates that ICW disclosure alters the information environment and managerial incentives, which has significant impact on firms’ financing decisions.

External Financing, Access to Debt Markets, and Stock Returns

2009 ◽  
Author(s):  
Kuo-Chiang (John) Wei ◽  
Full Yet Eric Campbell Lam
Keyword(s):  
Stock Returns ◽  
External Financing ◽  
Debt Markets
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