Do Personnel Stability, Family Business and Auditor Influence Financial Restatement?

Authors

  • Kai-Ling Chen Department of Leisure Recreation and Travel Management,Toko University, Taiwan
  • Shen-Ho Chang Department of Accounting, Feng Chia University,Taiwan
  • Teng-Shih Wang Executive Officer, Finance Division, Taoyuan Metro Corp,Taiwan

Abstract

This paper explores how the interaction of four conditions (chief director stability, top management stability, family business and firms with big 4 auditor) results in restatements. This paper uses qualitative comparative analysis (QCA), which is a relatively new method applied in accounting research to examine the cause of the restatements systematically. The results show firms not audited by Big 4 and family business are more possible to restate the financial reports due to accounting type errors. The results also imply that non family business audited by Big 4 or family controlled firms not audited by Big4 have more chance to restate the financial reports due to material accounting errors. Last family business not audited by Big 4 has more chance to restate the financial reports voluntarily.

Keywords: Personnel Stability; Qualitative Comparative Analysis; Restatement

JEL Classifications: M40; M41

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Published

2016-01-22

How to Cite

Chen, K.-L., Chang, S.-H., & Wang, T.-S. (2016). Do Personnel Stability, Family Business and Auditor Influence Financial Restatement?. International Journal of Economics and Financial Issues, 6(1), 245–251. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/1570

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