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 conferencePaper

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 languageEnglish (US)
DOIs
StatePublished - 2005
Externally publishedYes
Event65th Annual Meeting of the Academy of Management, AOM 2005 - Honolulu, HI, United States
Duration: Aug 5 2005Aug 10 2005

Other

Other65th Annual Meeting of the Academy of Management, AOM 2005
CountryUnited States
CityHonolulu, HI
Period8/5/058/10/05

Keywords

  • Executive
  • Restatement
  • Turnover

ASJC Scopus subject areas

  • Information Systems and Management

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    Arthaud-Day, M. L., Dalton, C. M., Certo, S. T., & Dalton, D. R. (2005). A changing of the guard: Executive and director turnover following corporate financial restatements. Paper presented at 65th Annual Meeting of the Academy of Management, AOM 2005, Honolulu, HI, United States. https://doi.org/10.5465/ambpp.2005.18778381