Journal of Management and Business Solutions 3092-7226 In Press 2026 09 01 Determinants and Consequences of Financial Statement Restatements: A Mixed-Methods Approach Determinants and Consequences of Financial Statement Restatements: A Mixed-Methods Approach 1 18 EN Journal Article <p>Financial statement restatement is a critical phenomenon in accounting literature, signaling the presence of material misstatements or policy deviations in prior periods. Such restatements not only undermine financial reporting quality but also trigger substantial economic and managerial repercussions for firms and stakeholders. Accordingly, this study aims to develop and validate a comprehensive model encompassing both the determinants and consequences of financial statement restatements. Adopting a mixed-methods research design, the qualitative phase employed the Delphi technique. Based on the consensus of 21 purposively selected experts across two rounds, 21 determinants and 6 consequences were identified and confirmed. In the quantitative phase, data from 114 firms listed on the Tehran Stock Exchange (TSE) were analyzed using Structural Equation Modeling (SEM) to test the final model’s parameters. The empirical results indicate that all identified determinants exert a statistically significant influence on restatement occurrences, with information asymmetry, audit committee independence, and auditor industry expertise exhibiting the most profound effects. Regarding consequences, restatements significantly drive CEO turnover, diminish sales growth rates, and alter accrual-based earnings management behaviors. Overall, the findings highlight the pivotal role of corporate governance and audit mechanisms in mitigating restatement risks, offering vital insights for policymakers, firms, and capital market participants.</p> https://www.journalmbs.com/index.php/jmbs/article/download/275/209