Do Companies Restore Their Reputation after Irregularities: Empirical Evidence from the Timeliness of Annual Earning Announcements

摘要

This paper studies the change of timeliness of annual earning announcements. We find that companies violating the regulations announce their earnings report significantly later before the year when the irregularities are investigated comparing with matching sample. But in the next three years, the degree of the timeliness increasing of irregularities' companies is greater. These results show that the companies violating the regulations will reveal positive signals to restore their reputation by increasing the timeliness of earnings report after the penalty.