The authors also find that ‘stocks are more liquid in the presence of a larger number of restating peers and for smaller restatements in net income relative to the industry benchmark’. The significance of the number of restating peers is taken to be that the greater the number of peers the greater the comparability. The significance of the size of the restatements is taken to be that larger restatements generate greater uncertainty among investors.
Panel 6.4: Gkougkous