A new study suggests that using online video to announce a financial restatement can lead to an erosion in investor trust if not handled properly.
The study, which appears in The Accounting Review, published by the American Accounting Association, found that announcing a financial restatement online through video sites like YouTube is likely to benefit firms only when top management apologizes for the restatement and accepts responsibility internally for the error. However, when management apologizes but shifts responsibility to outside accountants, announcing a restatement via video is likely to have a negative effect on investors.
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