The Reputational Penalty for Aggressive Accounting: Earnings Restatements and Management Turnover

By Hemang Desai, Chris E. Hogan, Michael S. Wilkins. 2004

853 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/e57a676bf034bf44e9722324a7be98bd7854b180

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Citations in the corpus

The Impact of Performance-based Compensation on Misreporting (2006, background): “Although Gao and Shrieves (2002) attribute this relation to the manager’s attempt to exploit the nonlinearity in the option compensation payoff, they do not test for this empirically.”
Admitting Mistakes: Home Country Effect on the Reliability of Restatement Reporting (2015, background): “9 Firms have incentives to avoid reporting restatements because truthful reporting of past misstatements, whether intentional or otherwise, draws attention to the severity of the accounting mistakes, undermines the credibility of internal controls and financial statements, and has negative firm-leve”
The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting (2010, background): “In a more recent study, Desai, Hogan, and Wilkins (2006) examine the frequency of managerial turnover following accounting restatements.”
The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation (2018, background): “2009), and negative consequences for firms, management, and directors (Palmrose and Scholz 2004; Srinivasan 2005; Desai et al. 2006; Karpoff et al. 2008; Collins et al. 2009; and Murphy et al. 2009).”
Do Financial Restatements Lead to Auditor Changes (2013, background): “Desai et al. (2006) and Agrawal and Cooper (2007) show that restating firms experience a higher turnover in top management relative to other firms.”
How firms respond to financial restatement : CEO successors and external reactions (2014, result): “Past empirical work also supports this argument: Desai et al. (2006) found that 59% of the firms that restated their earnings replaced the CEO or president within two years, and Arthaud-Day et al. (2006) found that CEOs, CFOs, outside directors, and audit committee members were all more likely to…”
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism (2015, neutral): “4 Eckel and Grossman (2004) and Croson and Gneezy (2009) provide excellent surveys of gender differences in risk attitudes in the economics literature.”
Comprehensive Income: Who's Afraid of Performance Reporting? (2010, neutral): “American Accounting Association With regard to CEO-chair duality, both Lucier et al. (2004) and Desai et al. (2006) show that CEOs who also chair the board enjoy lower turnover.”
The effects of firm size, corporate governance quality, and bad news on disclosure compliance (2011, result): “18 This expectation is consistent with the negative association between CEO duality and the high quality governance practice of managerial turnover following restatements (Desai et al. 2006).”