Accounting restatements, governance and municipal debt financing

• 成果类型: Article
• 署名作者: Baber, William R.; Gore, Angela K.; Rich, Kevin T.; Zhang, Jean X.
• 署名单位: Georgetown University; George Washington University; Marquette University; Virginia Commonwealth University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2013.08.003
• 发表日期: 2013
• 关键词: CORPORATE GOVERNANCE; STAGGERED BOARDS; public-sector; CONSEQUENCES; firm; determinants; association; COSTS

摘要

We find that mean municipal debt costs are greater following financial restatement disclosures. Comparisons of the relative use of municipal debt, and of the use of unsecured versus secured debt, corroborate that financial restatements increase the cost of municipal debt financing. Additional analyses indicate that adverse consequences of restatements are mitigated by strong audit oversight and by provisions that encourage direct voter participation in the governance process. The evidence supports the use of restatements as a summary measure of financial reporting quality in the municipal context and informs thinking about auditor and voter oversight in the municipal financial reporting process. (C) 2013 Elsevier B.V. All rights reserved.