Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73653
Authors: 
Hecker, Renate
Wild, Andreas
Year of Publication: 
2012
Series/Report no.: 
Tübinger Diskussionsbeitrag 334
Abstract: 
This study contributes to the literature by analyzing the potential market penalties due to financial reporting violations detected by the German enforcement regime. Event study results provide evidence that official error announcements lead to significant negative (cumulative) abnormal returns. Investigating the variation between the cumulative abnormal returns, the cross-sectional analysis indicates that companies are able to dilute the (negative) capital market reaction by releasing other (positive) information simultaneously. The negative stock market reaction is less pronounced for profit-decreasing errors. The cumulative abnormal returns are more negative for companies that have been listed for a longer period of time.
Subjects: 
German two-tier enforcement regime
quality of financial accounting
erroneous financial reports
Federal Financial Supervisory Authority (BaFin)
Financial Reporting Review Panel (FREP)
JEL: 
G14
M41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.