tailieunhanh - Trends, Market Impacts, Regulatory Responses, and Remaining Challenges

Exchanges have suggested several complementary rationales for establishing themselves as a source of corporate governance-related regulations. In essence, by raising transparency and discouraging illegal or irregular practices, exchanges are themselves able to accumulate an amount of “reputational capital”. The responses provided by stock exchanges to the IOSCO Consultation Report on Regulatory Issues Arising from Exchange Evolution (2006) generally took issue with the report's suggestion that "for profit exchanges may be tempted to lower standards to try to generate additional revenue." In particular following demutualisation, this line of argument has ncreasingly become a cornerstone of exchanges’ defence of. | United States General Accounting Office GAO Report to the Chairman Committee on Banking Housing and Urban Affairs . Senate October 2002 FINANCIAL STATEMENT RESTATEMENTS Trends Market Impacts Regulatory Responses and Remaining Challenges à. GAO. Integrity . Reliability GAO-03-138 Contents Letter 1 Results in Brief 4 Background 9 The Number of Restatements Has Grown Significantly and Trends Emerge 14 Restating Publicly Traded Companies Lost Billions of Dollars in Market Capitalization in the Days and Months Surrounding a Restatement Announcement 24 Restatements and Accounting Issues Appear to Have Negatively Impacted Investor Confidence 32 SEC Has Been Investigating an Increasing Number of Cases Involving Accounting-Related Issues 42 The Growing Number of Accounting Problems in the Corporate Financial Reporting System Have Spurred Reforms 55 Observations 72 Agency Comments and Our Evaluation 73 Appendixes Appendix I Objectives Scope and Methodology 75 Identifying the Number of and Reasons for Financial Statement Restatements 75 Determining the Impact of Financial Statement Restatements on Market Values of Restating Companies 77 Determining the Impact of Financial Statement Restatements on Investor Confidence 84 Analysis of SEC s Accounting-Related Enforcement Activities 84 Collecting Information on Current and Proposed Accounting and Financial Reporting Oversight Structures 85 Appendix II Comments from the Securities and Exchange Commission 86 Appendix III Listing of Financial Statement Restatement Announcements 1997-June 2002 88 Appendix IV Case Study Overview 113 Business Overview 114 Restatement Data 114 Accounting Auditing Firm 114 Stock Prices 114 Securities Analysts Recommendations 115 Credit Rating Agency Actions Taken 115 Legal and Regulatory Actions Taken 116 Page i GAO-03-138 Financial Restatements Contents Appendix V Adelphia Communications Corporation 117 Business Overview 117 Restatement Data 117 Accounting Audit Firm 118 Stock Price .