Career concerns for revealing misreporting

Quinn D. Curtis () and Justin J. Hopkins ()
Additional contact information
Quinn D. Curtis: University of Virginia
Justin J. Hopkins: The Darden Graduate Business School at the University of Virginia

Review of Accounting Studies, 2022, vol. 27, issue 1, No 1, 34 pages

Abstract: Abstract We examine whether revealing misreporting affects the careers of executives and independent directors. To isolate the effects of revealing misreporting from the underlying malfeasance, we analyze executives and directors who joined firms after stock option backdating ceased, but who were in place to determine how the firm would respond to the unfolding backdating crisis. Overall, these new executives and directors faced career penalties at firms that issued a backdating restatement relative to those at firms that remained silent despite strong evidence of backdating having occurred. We conduct a variety of tests to rule out alternative explanations, and conclude that new executives and directors face career penalties after firms reveal misreporting.

Keywords: Corporate governance; Executive turnover; Board of directors; Director labor market; Shareholder voting; Financial restatements; G34; J33; K22 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-021-09599-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reaccs:v:27:y:2022:i:1:d:10.1007_s11142-021-09599-4

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-021-09599-4

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().