What Incentivizes Managers to Engage in Financial Misreporting? An Analysis of Stock Delta, Option Delta, and Vega

2021 ◽  
Author(s):  
Bo Xu ◽  
Jay Junghun Lee
Keyword(s):  
Financial Misreporting

Executive option exercises and financial misreporting

2008 ◽  
Vol 32 (5) ◽  
pp. 845-857 ◽  
Author(s):  
Natasha Burns ◽  
Simi Kedia
Keyword(s):  
Financial Misreporting

The Economic Consequences of Financial Misreporting: Evidence from Employee Perspective

2021 ◽  
Author(s):  
Xinghua Gao ◽  
Yonghong Jia
Keyword(s):  
Firm Performance ◽  
Internal Control ◽  
Stock Prices ◽  
Employee Turnover ◽  
Labor Demand ◽  
Economic Consequences ◽  
Executive Turnover ◽  
Employee Perspective ◽  
Financial Misreporting ◽  
Employee Tenure

This study investigates the economic consequences of financial misreporting from the employee perspective. Specifically, we examine two employee reactions: (1) exiting from misreporting firms and (2) reducing holding of employer stock, in both the misreporting period and the post-restatement period. We find an increase in employee turnover and a decrease in employee holding of employer stock in the post-restatement period (restatement effect) and some evidence that employees start to react in the period of misreporting (misreporting effect). We also find some evidence that the misreporting effect varies with employee tenure in the misreporting period and the restatement effect varies with the severity of misreporting in the post-restatement period. We further show that our results are not driven by labor demand, increased likelihood of executive turnover, declining stock prices, internal control weakness disclosure, and poor firm performance.

scholarly journals Executive overconfidence and the slippery slope to financial misreporting

2012 ◽  
Vol 53 (1-2) ◽  
pp. 311-329 ◽  
Author(s):  
Catherine M. Schrand ◽  
Sarah L.C. Zechman
Keyword(s):  
Slippery Slope ◽  
Financial Misreporting

Financial Misreporting: Hiding in the Shadows or in Plain Sight?

2018 ◽  
Author(s):  
Delphine Samuels ◽  
Daniel Taylor ◽  
Robert E. Verrecchia
Keyword(s):  
Financial Misreporting
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