Does Financial Restatement Make Managerial Reputation Damaged?
There is less evidence on whether reputation mechanism enables more efficient corporate governance with the low-leveled credibility and integrity being currently in China. From the view of company restatement, this paper selected 184 A-share listed companies which had issued financial restatement on core accounting profit and earnings adjustment between 2007 and 2009 as the study sample to empirically test the impact of financial restatement on management turnover. Thus, the role of reputation mechanism in corporate governance could be tested. The results show that financial restatement reduces the management’s reputation and that financial restatement also significantly reduces the management’s media count as well, thereby reducing the management’s reputation. This paper enriches the research on corporate management and offers suggestions to government and investors by choosing the role of reputation mechanism in restatements as a new perspective.
financial restatement managerial reputation managerial turnover media count
LIU, Yuanyuan LI Yanxi LUO Yangyang
School of Accounting, Dongbei University of Finance and Economics , Dalian, China, 116025 Faculty of Faculty of Management and Economics, Dalian University of Technology, Dalian, China, 116023 School of Accounting, Dongbei University of Finance and Economics , Dalian, China, 116025
国际会议
大连
英文
152-164
2012-07-07（万方平台首次上网日期，不代表论文的发表时间）