Financial Restatement Definition   Academic Research on Financial Restatement Financial restatementannouncements and insider trading, Li, O. Z., & Zhang, Y. (2006). Financial restatement announcements and insider trading. This paper examines insider trading activities around financial restatement announcements and find strong evidence of informed trading by insiders. Focusing on the association between net insider selling and restatement announcement abnormal returns, the paper provides evidence of net insider selling before the restatement announcements, little net insider selling immediately around the announcements, and net insider buying after the announcements. How firms respond tofinancial restatement: CEO successors and external reactions, Gomulya, D., & Boeker, W. (2014). Academy of Management Journal,57(6), 1759-1785. This paper investigates the action taken by firms following reputation-damaging events. The paper identifies firms involved in financial earnings restatements and examine whether naming a successor CEO with specific qualities serves to signal the seriousness of a firm's efforts to restore its reputation. The paper shows that naming of such successors results in more positive reactions from the stock market, financial analysts, and mass media. Financialrestatements, audit fees, and the moderating effect of CFO turnover, Feldmann, D. A., Read, W. J., & Abdolmohammadi, M. J. (2009).Auditing: A Journal of Practice & Theory,28(1), 205-223. This article examines postrestatement audit fees and executive turnover for a sample of firms that restated their 2003 financial statements. It investigates and find evidence that audit fees are higher for restatement firms compared with a matchedpair control group of nonrestatement firms. The paper proposes that the higher audit fees reflect a cost of both an increase in perceived audit risk and a loss of organizational legitimacy. AIA submission: CEO overconfidence and the incidence offinancial restatement, Presley, T. J., & Abbott, L. J. (2013). Advances in accounting,29(1), 74-84. This paper analyses the influence of individual CEOs on financial reporting decisions. This paper examines the impact of one such CEO characteristic CEO overconfidence on the incidence of financial restatement. The study uses a matched-pairs research design consisting of 75 restatement firms, obtained through the GAO restatement sample, and a set of 75 non-restatement control firms as case study. The Theoretical Review ofFinancial RestatementResearch [J], Zhihua, W. Y. W. (2008).Securities Market Herald,3, 011. This paper focuses on the economic results,motivations,and determinants of the financial restatement in the review of literatures,analyzes the problems/ deficiency of the existing literature,and summarizes the latest research trends home and abroad,so as to provide proof for the research on the problem of financial restatement of Chinese listed companies. Does corporate governance affectrestatementoffinancialreporting? Evidence from China, Zhizhong, H., Juan, Z., Yanzhi, S., & Wenli, X. (2011). Nankai Business Review International,2(3), 289-302. This paper provides an advanced study on the impacts of corporate governance on financial restatements in China, with emphasis placed on the revision of accounting errors. The paper uses matched sample method to alleviate the impact of endogeneity of some explanatory variables. Stock Incentives andFinancial Restatement: Empirical Evidence from the Listed Firms in Chinese A Share Market [J], Jiasheng, H. G. P. (2009). Finance & Economics,11, 008. This paper analyses the concept of ownership structure in relations to efficiency of corporate governance. The paper examines the efficiency of ownership structure through financial restatements in two dimensions of control right and ultimate shareholders. The paper shows that decentralized ownership and state ownership has less efficiency in monitoring managers, so the insiders have more opportunities to manipulate earnings. This study extends research in corporate governance, and provides evidence to supervisors and investors in decision-making. Regulatory risk, borderline legality, fraud andfinancial restatement, Khanin, D., & Mahto, R. V. (2012). International Journal of Accounting & Information Management,20(4), 377-394. The purpose of this study is to assess how regulatory riskaverse, risk neutral and risk seeking companies employ distinct managerial risk and slack accumulation strategies and differ in their auditor scores and bankruptcy risk. A changing of the guard: Executive and director turnover following corporatefinancialrestatements, Arthaud-Day, M. L., Certo, S. T., Dalton, C. M., & Dalton, D. R. (2006). Academy of Management Journal,49(6), 1119-1136. This paper finds that CEOs and CFOs of firms filing a material financial restatement were more than twice as likely to exit their firms as their counterparts in a matched sample using event history analysis. It also shows that directors and audit committee members were approximately 70 percent more likely to exit in restatement firms. The paper aims to show that restatements provide an important and unique context for studying the accountability of strategic leaders for organizational crises. Ownership Structure andFinancial Restatement[J], Junrui, Z. H. A. N. G., & Chen, M. A. (2011). Journal of Audit & Economics,2, 010. This study investigates the relationship between ownership structure and financial restatement systematically by matched sample analysis method,taking financial restatement occurs or not as a dependent variable. It uses items of accounting errors correction from supplement and correction statement in Chinese listed firms in a share market between 20052009 for analysis. The Public Company's Share Structure and theRestatementofFinancialReports [J], Guang, Z. C. M. (2005). Journal of Finance,11, 010. This paper analyses the degree of restatements of financial reporting in Chinas security market. The paper uses Logistics regression approach to examine the impacts of corporate share structure and other related variables on the probability of restatements and find that a public company's share structure (e.g., the ratio of floating A shares) and its geographic location, among other factors, affect the probability of the company's financial reporting restatement significantly.