dc.contributor.authorGomulya, David
dc.contributor.authorBoeker, Warren
dc.identifier.citationGomulya, D., & Boeker, W. (2014). How firms respond to financial restatement : CEO successors and external reactions. Academy of management journal, 57(6), 1759-1785.en_US
dc.description.abstractAlthough 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 qualities 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.en_US
dc.relation.ispartofseriesAcademy of management journalen_US
dc.rights© 2014 Academy of Management Journal.en_US
dc.titleHow firms respond to financial restatement : CEO successors and external reactionsen_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US

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