Using Online Video to Announce a Restatement: Influences on Investment Decisions and the Mediating Role of Trust

• 成果类型: Article
• 署名作者: Elliott, W. Brooke; Hodge, Frank D.; Sedor, Lisa M.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle; DePaul University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-10202
• 发表日期: 2012
• 页码: 513-535
• 关键词: communication modality; ATTRIBUTIONS; determinant; explanation; disclosure; character; SUSPICION; Excuses; MARKET; Blame

摘要

Press releases accompanying earnings restatements attempt to minimize negative reactions by explaining the reasons for the restatement. Although text-based press releases have been the norm for years, firms have recently begun using online video for such announcements. We examine the implications of doing so, and find that when a CEO accepts responsibility by making an internal attribution for a restatement, investors viewing the announcement online via video recommend larger investments in the firm than do investors viewing the announcement online via text. In contrast, when the CEO denies responsibility by making an external attribution for the restatement, investors viewing the announcement online via video recommend smaller investments in the firm than do investors viewing the announcement online via text. Our results also reveal that investor trust mediates the effect of disclosure venue and attribution on investment recommendations. These findings are important given the economic significance and trust-damaging implications of restatements, as well as the increased use of online video to make important announcements.