Municipal accounting restatements and top financial manager turnover
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2016
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.
Citation
Rich, K.T. and Zhang, J.X. (2016), "Municipal accounting restatements and top financial manager turnover", Journal of Public Budgeting, Accounting & Financial Management, Vol. 28 No. 2, pp. 222-249. https://doi.org/10.1108/JPBAFM-28-02-2016-B005
Publisher
:Emerald Publishing Limited
Copyright © 2016 by PrAcademics Press