Work

Municipal accounting restatements and top financial manager turnover

Year: 2016

Type: article

Abstract: We investigate whether municipal financial manager turnover is associated with accounting restatements. This analysis is motivated by the notion that suspect financial reporting could limit the ability of stakeholders to assess the use of public resources (GASB, 2006). The evidence suggests that municipalities disclosing accounting restatements are more likely to see changes in the top financial manager position than a control sample of non-restatement municipalities. Overall, our findings are consistent with associations between financial reporting quality and the labor market for municipal financial managers, and imply that governments should consider adding the prevalence of accounting failures as an input in the evaluation of top financial managers.

Source: Journal of Public Budgeting Accounting & Financial Management

DOI: 10.1108/jpbafm-28-02-2016-b005

Authors: Kevin T. Rich, Jean X. Zhang

Institutions: Marquette University, Virginia Commonwealth University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3122039996

FWCI: 6.142

Cites: 53

Cited by: 18

Related to: 10