We then use Compustat to generate a control sample, matching each of the 683 observations
remaining in the restatement sample with a company that did not make financial
restatements but which had similar size (total assets), industry (using four-digit SIC Codes)
and year (using the year of the accounting misstatement for the treatment companies); this
is the same matching process used in Dechow et al. (1996). Finally, for each observation
in both the treatment and control samples, data regarding characteristics of that company’s