Annual report restatement, media attention and corporate accounting information quality

Abstract

This study analyzes the relationship between annual report restatement, media attention and the quality of accounting information. The findings demonstrate that annual report restatement positively impacts enterprise accounting information quality, particularly when the restatement is caused by bad news. Annual report restatement affects the quality of accounting information by affecting the stock market dynamics. Specifically, bad news restatements exert a positive effect on accounting information quality by exerting downward pressure on stock prices. Furthermore, media attention significantly enhances the positive effect of annual report restatement on the quality of accounting information.