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

• 成果类型: Article
• 署名作者: Arthaud-Day, Marne L.; Certo, S. Trevis; Dalton, Catherine M.; Dalton, Dan R.
• 署名单位: Kansas State University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• 发表日期: 2006
• 页码: 1119-1136
• 关键词: TOP MANAGEMENT; CEO succession; ORGANIZATIONAL LEGITIMACY; BOARD COMPOSITION; DISTRESSED FIRMS; Audit committee; UPPER ECHELONS; CONSEQUENCES; performance; governance

摘要

Using event history analysis, we found that CEOs and CFOs of firms filing a material financial restatement were more than twice as likely to exit their firms as their counterparts in a matched sample. Directors and audit committee members were approximately 70 percent more likely to exit in restatement firms. The magnitude, ubiquity, and temporal proximity of executive and director turnover following a restatement indicate that such events pose a serious threat to organizational legitimacy, independent of firm performance. Restatements therefore provide an important and unique context for studying the accountability of strategic leaders for organizational crises.