Nari Kim’s Three Minute Thesis
Destroyed Reputation: The Effect of Financial Restatement in M&A Transaction
Although past studies have paid considerable attention to firm’s mergers and acquisitions (M&A) transactions, few have investigated how a firm’s negative event spoils its valuation. Corporate financial fraud has a huge effect on their reputation by being considered as a lack of current or future financial credibility, internal control, and legitimacy. Nari’s study discusses how a firm’s financial restatement stigmatizes it and devaluates its value in M&A transaction. To the extent that large numbers of M&A announcement and financial restatement occur in the U.S., this study shows how a one-time event can spoil firms’ overall valuation in acquisition transaction.
About Nari
Nari Kim is a Ph.D. candidate in business administration with concentration in management at Washington State University, Carson College of Business. Prior to beginning the Ph.D. program, Nari received her master’s degree in industrial/organizational psychology from State University of New York at Albany. Her research interests include corporate wrongdoings, firm reputation, and CEO.