The Impact Of The Restatement Of Financial Statements On Company Growth IRAN

Restatement of financial statements to the market contains new information. Viewpoints of investor determine than inquiry restatement of prior period financial statements is not only the problems of past performance but also consider a prediction of future problems for the company and its management, Results in a loss investor confidence to credit and competence to manage and mitigate quality reported profits. Restatement of financial statements a factor that can put the reliability of published financial information on the halo of ambiguity. In this study, the effect restatement of financial statements in general and its components, the growth of the company short term finance growth and the maximum sustainable growth rate have been discussed. It has found that accounting restatement of in Iran has no significant impact on the growth of firms. Hausman test is used in this it is conducted so as to determine whether random effects models or fixed effects models will provide a closer description of the impact of financial restatements on max. sustainable growth rate. In this way, the company's cash resources reduce to make profitable investment projects that it would reduce the growth of the company. These effects for companies that due to Financial fraud (violations), have been restated, is much more pronounced.