Municipal Accounting Restatements and Top Financial Manager Turnover

27 Pages Posted: 24 Oct 2014

See all articles by Kevin T. Rich

Kevin T. Rich

Marquette University - Department of Accounting

Jean X. Zhang

Virginia Commonwealth University (VCU)

Date Written: October 6, 2014

Abstract

We investigate whether municipal financial managers face labor market consequences following accounting restatements. The evidence suggests that municipalities that disclose accounting restatements are more likely to experience turnover in the top financial manager position than a control sample of non-restatement municipalities. Overall, our findings are consistent with citizens and/or municipal leaders understanding the adverse consequences associated with accounting failures, and taking corrective action following their disclosure by imposing consequences on those overseeing financial reports that require restatement.

Keywords: restatement, executive turnover, financial oversight, municipal accounting

Suggested Citation

Rich, Kevin T. and Zhang, Jean X., Municipal Accounting Restatements and Top Financial Manager Turnover (October 6, 2014). Available at SSRN: https://ssrn.com/abstract=2513963 or http://dx.doi.org/10.2139/ssrn.2513963

Kevin T. Rich (Contact Author)

Marquette University - Department of Accounting ( email )

College of Business Administration
PO Box 1881
Milwaukee, WI 53092
United States

Jean X. Zhang

Virginia Commonwealth University (VCU) ( email )

301 West Main Street
P.O. Box 844000
Richmond, VA 23284
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
89
Abstract Views
437
rank
292,452
PlumX Metrics