A changing of the guard: Executive and director turnover following corporate financial restatements

Marne L. Arthaud-Day; Catherine M. Dalton; S. Trevis Certo; Dan R. Dalton

doi:10.5465/ambpp.2005.18778381

A changing of the guard: Executive and director turnover following corporate financial restatements

Marne L. Arthaud-Day, Catherine M. Dalton, S. Trevis Certo, Dan R. Dalton

Research output: Contribution to conference › Paper › peer-review

Abstract

This study examines the impact of corporate earnings restatements on strategic leaders. We hypothesize that restatement firms will attempt to reestablish organizational legitimacy by removing the leadership associated with the restatement event. As predicted, restatement firms are nearly twice as likely to experience turnover in CEO, CFO, board, and audit committee positions, compared to a matched sample. Restatement firms are also more likely to rely on outside CEO succession and to eliminate CEO duality.

Original language	English (US)
DOIs	https://doi.org/10.5465/ambpp.2005.18778381
State	Published - 2005
Externally published	Yes
Event	65th Annual Meeting of the Academy of Management, AOM 2005 - Honolulu, HI, United States Duration: Aug 5 2005 → Aug 10 2005

Other

Other	65th Annual Meeting of the Academy of Management, AOM 2005
Country/Territory	United States
City	Honolulu, HI
Period	8/5/05 → 8/10/05

Keywords

Executive
Restatement
Turnover

ASJC Scopus subject areas

Information Systems and Management

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10.5465/ambpp.2005.18778381

Cite this

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abstract = "This study examines the impact of corporate earnings restatements on strategic leaders. We hypothesize that restatement firms will attempt to reestablish organizational legitimacy by removing the leadership associated with the restatement event. As predicted, restatement firms are nearly twice as likely to experience turnover in CEO, CFO, board, and audit committee positions, compared to a matched sample. Restatement firms are also more likely to rely on outside CEO succession and to eliminate CEO duality.",

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author = "Arthaud-Day, {Marne L.} and Dalton, {Catherine M.} and Certo, {S. Trevis} and Dalton, {Dan R.}",

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AB - This study examines the impact of corporate earnings restatements on strategic leaders. We hypothesize that restatement firms will attempt to reestablish organizational legitimacy by removing the leadership associated with the restatement event. As predicted, restatement firms are nearly twice as likely to experience turnover in CEO, CFO, board, and audit committee positions, compared to a matched sample. Restatement firms are also more likely to rely on outside CEO succession and to eliminate CEO duality.

KW - Executive

KW - Restatement

KW - Turnover

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ER -

A changing of the guard: Executive and director turnover following corporate financial restatements

Abstract

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Keywords

ASJC Scopus subject areas

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