HOW FIRMS RESPOND TO FINANCIAL RESTATEMENT: CEO SUCCESSORS AND EXTERNAL REACTIONS

• 成果类型: Article
• 署名作者: Gomulya, David; Boeker, Warren
• 署名单位: Nanyang Technological University; University of Washington; University of Washington Seattle
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/amj.2012.0491
• 发表日期: 2014
• 页码: 1759-1785
• 关键词: TOP MANAGEMENT; ORGANIZATIONAL REPUTATION; CERTIFICATION CONTESTS; EARNINGS RESTATEMENTS; EXECUTIVE SUCCESSION; performance; MARKET; media; CONSEQUENCES; dismissal

摘要

Although past studies have paid considerable attention to firms' reputations, few have investigated the actions that firms take following a reputation-damaging event. We identify firms involved in financial earnings restatements and examine whether naming a successor CEO with specific qualifies serves to signal the seriousness of a firm's efforts to restore its reputation. Using theories of market signaling, we argue that attributes of successor CEOs significantly influence the reactions of key external constituencies. In particular, firms with more severe restatement tend to name successors who have prior CEO or turnaround experience and a more elite education. The naming of such successors results in more positive reactions from the stock market, financial analysts, and mass media. We argue that these attributes send messages to stakeholders and the broader public about the CEO's credibility and the firm's efforts.