Table 5 Cross-sectional regression...

Table 5

Cross-sectional regression results

	Model (1)	Model (2)	Model (3)	Model (4)	Model (5)
	Panel A: 21-day CAR
King IV	−3.8470			−0.5733	2.7047
Error		0.3919		−2.6239	28.6158
Irregularity		−64.2101		−74.8995	4.1105
Policy		−3.6192**		−3.2752	22.2884
Repeat			11.9486	33.2147	−12.8541
EarnPos					28.7688**
EarnNeg					10.9473*
Return					−0.0759**
Size					−1.7423
$∆$ EPS					−0.0413
Prior $∆$ EPS					0.0685***
Adj. R-squared	−0.023	0.0833	−0.0197	0.0804	0.2428
	Panel B: 5−day CAR
King IV	−0.8416			3.9793	3.9225
Error		−0.7901		−2.3979	24.9982
Irregularity		−6.2743		−7.2120	17.3424
Policy		−6.9017		−9.2893	20.4267
Repeat			−4.7678	−5.1457	−3.1988
EarnPos					13.2472*
EarnNeg					2.1792
Return					0.0113
Size					−1.4824
$∆$ EPS					−0.0339
Prior $∆$ EPS					0.0218
Adj. R-squared	−0.0245	−0.0177	−0.0114	−0.0474	−0.1479
	Panel C: 3−day CAR
King IV	−3.7487**			−3.9764	−0.7096
Error		−1.6803		−0.9769	−1.2976
Irregularity		−13.1494*		−15.2228	1.3805
Policy		−4.3310		−1.9452	−1.9528
Repeat			5.6583		−4.9438
EarnPos					4.4511
EarnNeg					3.0585
Return					0.0245
Size					−0.1479
$∆$ EPS					−0.0348
Prior $∆$ EPS					−0.0110
Adj. R-squared	−0.0230	0.0501	−0.0034	0.1224	−0.2177

	Model (1)	Model (2)	Model (3)	Model (4)	Model (5)
	Panel A: 21-day CAR
King IV	−3.8470			−0.5733	2.7047
Error		0.3919		−2.6239	28.6158
Irregularity		−64.2101		−74.8995	4.1105
Policy		−3.6192**		−3.2752	22.2884
Repeat			11.9486	33.2147	−12.8541
EarnPos					28.7688**
EarnNeg					10.9473*
Return					−0.0759**
Size					−1.7423
$∆$ EPS					−0.0413
Prior $∆$ EPS					0.0685***
Adj. R-squared	−0.023	0.0833	−0.0197	0.0804	0.2428
	Panel B: 5−day CAR
King IV	−0.8416			3.9793	3.9225
Error		−0.7901		−2.3979	24.9982
Irregularity		−6.2743		−7.2120	17.3424
Policy		−6.9017		−9.2893	20.4267
Repeat			−4.7678	−5.1457	−3.1988
EarnPos					13.2472*
EarnNeg					2.1792
Return					0.0113
Size					−1.4824
$∆$ EPS					−0.0339
Prior $∆$ EPS					0.0218
Adj. R-squared	−0.0245	−0.0177	−0.0114	−0.0474	−0.1479
	Panel C: 3−day CAR
King IV	−3.7487**			−3.9764	−0.7096
Error		−1.6803		−0.9769	−1.2976
Irregularity		−13.1494*		−15.2228	1.3805
Policy		−4.3310		−1.9452	−1.9528
Repeat			5.6583		−4.9438
EarnPos					4.4511
EarnNeg					3.0585
Return					0.0245
Size					−0.1479
$∆$ EPS					−0.0348
Prior $∆$ EPS					−0.0110
Adj. R-squared	−0.0230	0.0501	−0.0034	0.1224	−0.2177

Note(s): Table 5 reports regression results examining the effects of the introduction of the King IV code, the reason for the restatement (accounting error, irregularity or policy change) and whether the firm has previously issued a restatement, together with a set of control variables, on 21-, 5- and 3-day CARs in Panels A, B and C respectively. Newey–West heteroscedasticity and autocorrelation standard errors are used. *, **, and *** indicate significance at the 10%, 5% and 1% levels respectively

Source(s): Authors’ own work

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