Consequences of accounting misconduct disclosure for the firm's performance and the audit partner

2021 Fiscal Year Final Research Report

• Project/Area Number: 19K23196
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Multi-year Fund
• Review Section: 0107:Economics, business administration, and related fields
• Research Institution: Tohoku University (2020-2021); Osaka City University (2019)
• Principal Investigator: Ozeki Norimasa 東北大学, 経済学研究科, 准教授 (60846038)
• Project Period (FY): 2019-08-30 – 2022-03-31
• Keywords: 財務会計 / 監査 / 不正会計 / 株価形成 / 第三者委員会 / 会計的裁量行動 / 監査人 / パートナー

Outline of Final Research Achievements

This study empirically analyzes the consequences that occur when financial misconduct is revealed and the determinants of their effects, targeting Japanese listed companies and auditors. The main results are as follows. (1) The stock price of a misconduct firm is less likely to keep declining in the cases that a third-party (independent) committee investigates it. (2) Firms with restatement due to financial misconduct are more likely to clean up their prior discretional accounting process and improve the quality of their financial reporting in subsequent periods. (3) Audit partners who signed the restated period are more likely to be replaced by their current clients, not only by clients who were revealed misstatements.

Free Research Field

会計額

Academic Significance and Societal Importance of the Research Achievements

財務報告が株式市場における投資意思決定を支えるためにはその信頼性を確保することが必要となる。不正会計が発覚して財務報告の信頼が失われた当事者や関係者に生じる帰結は，財務報告の信頼性によって維持されていたものを示すと解釈できる。本研究の学術的な意義は，そのような財務報告の信頼性の毀損やその修復によって，企業や監査人の評価にあらわれる具体的な影響の実態を提示した点にある。また，そのような実態を示す社会的な意義として，信頼を失うことによるペナルティの大きさが示されることから，企業が不正会計を実行する判断の抑止や，監査人が行う監査品質の向上に貢献すると考えられる。