anybody know how to access the magnitude of restatment?
Posted: 04 April 2014 01:42 PM   [ Ignore ]
Newbie
Rank
Total Posts:  16
Joined  2014-04-04

Hello there,

I am reading Palmrose, Richardson, Scholz 2004 JAE paper about restatement impacts.

does anybody know how to find the magnitude of restatement from AA? I didn’t find the variable “cumulative change in net income”. another related variable “effect” are also not found in the file of audit.auditnonreli file .... can anybody help?

these variables are listed in the audit analytics manual. i suppose people use it for the magnitude of net income restatement, am i right?

thanks a lot,
Clark

Profile
 
 
Posted: 04 April 2014 02:53 PM   [ Ignore ]   [ # 1 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

hi Clark,

I wouldn’t know where this info (if it is) on AA (manually would work though). I am forwarding your question to the Google group (any replies I will post in this thread).

best regards,

Joost

 Signature 

To reply/post new questions: Please use the group WRDS/SAS on Google Groups! http://groups.google.com/d/forum/wrdssas

Profile
 
 
Posted: 04 April 2014 05:39 PM   [ Ignore ]   [ # 2 ]
Newbie
Rank
Total Posts:  16
Joined  2014-04-04

Joost,

Thanks a lot for your kind help.
Even a variable to tell the direction of the cumulative effect on Net income of the restatement will really help me here.

Thanks a lot,
Clark

Profile
 
 
Posted: 27 April 2014 01:25 PM   [ Ignore ]   [ # 3 ]
Newbie
Rank
Total Posts:  16
Joined  2014-04-04

after i read more, it seems this information needs to be hand collected….

Profile
 
 
Posted: 19 May 2014 07:32 PM   [ Ignore ]   [ # 4 ]
Administrator
Avatar
RankRankRankRank
Total Posts:  901
Joined  2011-09-19

hi Clark,

One source that may be helpful to (partially) automate this is Compustat Unrestated Quarterly Data. This dataset holds the initial earnings released (where Funda/Fundq will have the restated earnings). See some more info here: http://charteroaksystems.com/data_products/compustat/unrestated.html

So a comparison of this unrestated data with Fundq should indicate the firms that had a restatement.

best regards,

Joost

 Signature 

To reply/post new questions: Please use the group WRDS/SAS on Google Groups! http://groups.google.com/d/forum/wrdssas

Profile
 
 
Posted: 03 February 2015 07:44 PM   [ Ignore ]   [ # 5 ]
Newbie
Rank
Total Posts:  8
Joined  2015-01-26

you may calculate the days from the restatement starts until restatement ends.
I know there are other proxies, but i can not remember them now. You can read more papers with key words “restatement magnitude”

Profile