Date of Award
2020-01-01
Degree Name
Doctor of Philosophy
Department
Theses & Dissertations (College of Business)
Advisor(s)
Giorgio Gotti
Second Advisor
David Folsom
Abstract
I examine the impact of whistleblowing allegations on the financial reporting behavior of peer firms. This study provides several important findings. First, industry peers exhibit decreases in accrual-based earnings management, real earnings management, and the likelihood of financial misreporting in the two years following a whistleblowing allegation. Second, following a whistleblowing allegation, peer firms exhibit greater conditional conservatism. Third, peer firms increase earnings transparency to respond to whistleblowing allegations with the intention of improving financial reporting quality. I find results are strongest when the whistleblowing event relates specifically to accounting fraud. Whistleblowing allegations at large firms have greater impact on peer firms' post-whistleblowing financial reporting. Prior literature shows that whistleblowing allegations are associated with changes in the financial reporting of whistleblowing target firms; this paper provides evidence that whistleblowing allegations also impact peer firms' financial reporting.
Language
en
Provenance
Received from ProQuest
Copyright Date
2020-05
File Size
74 pages
File Format
application/pdf
Rights Holder
Fuzhao zhou
Recommended Citation
Zhou, Fuzhao, "The Deterrence Effect Of Whistleblowing On Peer Firms' Financial Reporting Decisions" (2020). Open Access Theses & Dissertations. 3063.
https://scholarworks.utep.edu/open_etd/3063