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A Review of Earnings Restatements

Earnings restatement rewrites a company's history. Although it is not a new phenomenon, the number of corporate earnings restatements has increased significantly during the past few years, and it has drawn much attention from investors, analysts, and regulators.

This article by Dr. Min Wu, of New York University Stern School of Business, summarizes on an empirical capital market analysis of earnings restatements using a sample covering a quarter century. The research investigates the market reaction up and around restatements and assesses the consequences of restatements. Read the details in this whitepaper.

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