IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v37y2016i9p1898-1918.html
   My bibliography  Save this article

Reassessing board member allegiance: CEO replacement following financial misconduct

Author

Listed:
  • David Gomulya
  • Warren Boeker

Abstract

No abstract is available for this item.

Suggested Citation

  • David Gomulya & Warren Boeker, 2016. "Reassessing board member allegiance: CEO replacement following financial misconduct," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1898-1918, September.
  • Handle: RePEc:bla:stratm:v:37:y:2016:i:9:p:1898-1918
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/smj.2427
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Agrawal, Anup & Jaffe, Jeffrey F & Karpoff, Jonathan M, 1999. "Management Turnover and Governance Changes following the Revelation of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 309-342, April.
    2. Jo-Ellen Pozner, 2008. "Stigma and Settling Up: An Integrated Approach to the Consequences of Organizational Misconduct for Organizational Elites," Journal of Business Ethics, Springer, vol. 80(1), pages 141-150, June.
    3. Kinney, William Jr. & McDaniel, Linda S., 1989. "Characteristics of firms correcting previously reported quarterly earnings," Journal of Accounting and Economics, Elsevier, vol. 11(1), pages 71-93, February.
    4. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    5. Glenn Hoetker, 2007. "The use of logit and probit models in strategic management research: Critical issues," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 331-343, April.
    6. Cynthia E. Devers & Todd Dewett & Yuri Mishina & Carrie A. Belsito, 2009. "A General Theory of Organizational Stigma," Organization Science, INFORMS, vol. 20(1), pages 154-171, February.
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. Karpoff, Jonathan M. & Lee, D. Scott & Martin, Gerald S., 2008. "The Cost to Firms of Cooking the Books," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 43(3), pages 581-611, September.
    9. Ruth V. Aguilera & Igor Filatotchev & Howard Gospel & Gregory Jackson, 2008. "An Organizational Approach to Comparative Corporate Governance: Costs, Contingencies, and Complementarities," Organization Science, INFORMS, vol. 19(3), pages 475-492, June.
    10. John C. Coates IV, 2007. "The Goals and Promise of the Sarbanes-Oxley Act," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 91-116, Winter.
    11. Burks, Jeffrey J., 2010. "Disciplinary measures in response to restatements after Sarbanes-Oxley," Journal of Accounting and Public Policy, Elsevier, vol. 29(3), pages 195-225, June.
    12. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    13. Palmrose, Zoe-Vonna & Richardson, Vernon J. & Scholz, Susan, 2004. "Determinants of market reactions to restatement announcements," Journal of Accounting and Economics, Elsevier, vol. 37(1), pages 59-89, February.
    14. Jared Harris & Philip Bromiley, 2007. "Incentives to Cheat: The Influence of Executive Compensation and Firm Performance on Financial Misrepresentation," Organization Science, INFORMS, vol. 18(3), pages 350-367, June.
    15. Michael D. Pfarrer & Ken G. Smith & Kathryn M. Bartol & Dmitry M. Khanin & Xiaomeng Zhang, 2008. "Coming Forward: The Effects of Social and Regulatory Forces on the Voluntary Restatement of Earnings Subsequent to Wrongdoing," Organization Science, INFORMS, vol. 19(3), pages 386-403, June.
    16. Wintoki, M. Babajide, 2007. "Corporate boards and regulation: The effect of the Sarbanes-Oxley Act and the exchange listing requirements on firm value," Journal of Corporate Finance, Elsevier, vol. 13(2-3), pages 229-250, June.
    17. James S. Linck & Jeffry M. Netter & Tina Yang, 2009. "The Effects and Unintended Consequences of the Sarbanes-Oxley Act on the Supply and Demand for Directors," Review of Financial Studies, Society for Financial Studies, vol. 22(8), pages 3287-3328, August.
    18. Fragale, Alison R. & Rosen, Benson & Xu, Carol & Merideth, Iryna, 2009. "The higher they are, the harder they fall: The effects of wrongdoer status on observer punishment recommendations and intentionality attributions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(1), pages 53-65, January.
    19. William R. Kinney & Zoe‐Vonna Palmrose & Susan Scholz, 2004. "Auditor Independence, Non‐Audit Services, and Restatements: Was the U.S. Government Right?," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 561-588, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. U. David Park & Warren Boeker & David Gomulya, 2020. "Political ideology of the board and CEO dismissal following financial misconduct," Strategic Management Journal, Wiley Blackwell, vol. 41(1), pages 108-123, January.
    2. Abhinav Gupta & Adam J. Wowak & Warren Boeker, 2022. "Corporate directors as heterogeneous network pipes: How director political ideology affects the interorganizational diffusion of governance practices," Strategic Management Journal, Wiley Blackwell, vol. 43(8), pages 1469-1498, August.
    3. Michael C. Withers & Michael D. Howard & Laszlo Tihanyi, 2020. "You’ve Got a Friend: Examining Board Interlock Formation After Financial Restatements," Organization Science, INFORMS, vol. 31(3), pages 742-769, May.
    4. Foreman, Jeremy J. & Soebbing, Brian P. & Seifried, Chad S., 2019. "The impact of deviance on head coach dismissals and implications of a personal conduct policy," Sport Management Review, Elsevier, vol. 22(4), pages 491-501.
    5. Scott L. Mitchell & Mark D. Packard & Brent B. Clark, 2022. "Decentralizing corporate governance? A praxeological inquiry," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(4), pages 413-429, December.
    6. Chowdhury, Jaideep & Sahaym, Arvin & Raina, Gurdeep Singh, 2023. "When is the board’s two cents worth more? The relationship between board of directors’ pay and firm performance under contingencies," Journal of Business Research, Elsevier, vol. 167(C).
    7. Michelle L. Zorn & Kaitlyn DeGhetto & David J. Ketchen & James G. Combs, 2020. "The impact of hiring directors' choice‐supportive bias and escalation of commitment on CEO compensation and dismissal following poor performance: A multimethod study," Strategic Management Journal, Wiley Blackwell, vol. 41(2), pages 308-339, February.
    8. Chunling Zhu & Ruixin Zeng & Ruxi Wang & Yihui Xiao, 2023. "Corporate social responsibility and chief executive officer wrongdoing: A fraud triangle perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 874-888, March.
    9. Lerong He & Rong Yang & Yuanlong He, 2018. "Does social exchange relationship impair audit committee effectiveness?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(2), pages 219-249, June.
    10. Hu, Chenguang & Li, Jiatao & Yun, Kyung Hwan, 2023. "Re-examining foreign subsidiary survival in a transition economy: Impact of market identity overlap and conflict," Journal of World Business, Elsevier, vol. 58(3).
    11. Brian L. Connelly & Wei Shi & Jinyong Zyung, 2017. "Managerial response to constitutional constraints on shareholder power," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1499-1517, July.
    12. Gorshunov, Mikhail A. & Armenakis, Achilles A. & Harris, Stanley G. & Walker, H. Jack, 2021. "Quad-qualified audit committee director: Implications for monitoring and reducing financial corruption," Journal of Corporate Finance, Elsevier, vol. 66(C).
    13. Seemantini Pathak & Codou Samba & Mengge Li, 2021. "Audit committee diversity and financial restatements," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 899-931, September.
    14. Jo-Ellen Pozner & Aharon Mohliver & Celia Moore, 2019. "Shine a Light: How Firm Responses to Announcing Earnings Restatements Changed After Sarbanes–Oxley," Journal of Business Ethics, Springer, vol. 160(2), pages 427-443, December.
    15. Hansin Bilgili & Jonathan L. Johnson & Tsvetomira V. Bilgili & Alan E. Ellstrand, 2022. "Research on social relationships and processes governing the behaviors of members of the corporate elite: a review and bibliometric analysis," Review of Managerial Science, Springer, vol. 16(8), pages 2285-2339, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:cdl:indrel:qt0pw177jc is not listed on IDEAS
    2. Khanna, Poonam & Khan, Sarfraz A. & Krasikova, Dina & Miller, Stewart R., 2021. "Repeated engagement in misconduct by executives involved with financial restatements," Organizational Behavior and Human Decision Processes, Elsevier, vol. 166(C), pages 194-203.
    3. Lerong He & Rong Yang & Yuanlong He, 2018. "Does social exchange relationship impair audit committee effectiveness?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(2), pages 219-249, June.
    4. Ann-Christine Schulz & Miriam Flickinger, 2020. "Does CEO (over)compensation influence corporate reputation?," Review of Managerial Science, Springer, vol. 14(4), pages 903-927, August.
    5. Benjamin S. Kay & Cindy M. Vojtech, 2015. "Corporate Governance Responses to Director Rule Changes," Staff Discussion Papers 15-02, Office of Financial Research, US Department of the Treasury.
    6. Nadejda SERDIUC & Hanen KHEMAKHEM, 2015. "The Impact of SOX Adoption on the Compensation of Non-US Companies’ Boards: The Case of Canadian Companies," Expert Journal of Business and Management, Sprint Investify, vol. 3(2), pages 182-188.
    7. Martin J. Conyon & Lerong He, 2016. "Executive Compensation and Corporate Fraud in China," Journal of Business Ethics, Springer, vol. 134(4), pages 669-691, April.
    8. Kryzanowski, Lawrence & Zhang, Ying, 2013. "Financial restatements and Sarbanes–Oxley: Impact on Canadian firm governance and management turnover," Journal of Corporate Finance, Elsevier, vol. 21(C), pages 87-105.
    9. Beneish, Messod D. & Marshall, Cassandra D. & Yang, Jun, 2017. "Explaining CEO retention in misreporting firms," Journal of Financial Economics, Elsevier, vol. 123(3), pages 512-535.
    10. Jo-Ellen Pozner & Aharon Mohliver & Celia Moore, 2019. "Shine a Light: How Firm Responses to Announcing Earnings Restatements Changed After Sarbanes–Oxley," Journal of Business Ethics, Springer, vol. 160(2), pages 427-443, December.
    11. Claudine Gartenberg & Lamar Pierce, 2017. "Subprime governance: Agency costs in vertically integrated banks and the 2008 mortgage crisis," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 300-321, February.
    12. Sharma, Vineeta, 2011. "Independent directors and the propensity to pay dividends," Journal of Corporate Finance, Elsevier, vol. 17(4), pages 1001-1015, September.
    13. Street, Daniel A. & Hermanson, Dana R., 2019. "How do restatements affect outside directors and boards? A review of the literature," Journal of Accounting Literature, Elsevier, vol. 43(C), pages 19-46.
    14. Karen Schnatterly & Felipe Calvano & John P. Berns & Chaoqun Deng, 2021. "The effects of board expertise‐risk misalignment and subsequent strategic board reconfiguration on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2162-2191, November.
    15. Thomas C. Omer & shelley@unl.edu & Frances M. Tice, 2020. "Do Director Networks Matter for Financial Reporting Quality? Evidence from Audit Committee Connectedness and Restatements," Management Science, INFORMS, vol. 66(8), pages 3361-3388, August.
    16. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    17. Shelby L. Gai & J. Yo‐Jud Cheng & Andy Wu, 2021. "Board design and governance failures at peer firms," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1909-1938, October.
    18. Abdul Ghafoor & Rozaimah Zainudin & Nurul Shahnaz Mahdzan, 2019. "Factors Eliciting Corporate Fraud in Emerging Markets: Case of Firms Subject to Enforcement Actions in Malaysia," Journal of Business Ethics, Springer, vol. 160(2), pages 587-608, December.
    19. Eunice S. Khoo & Youngdeok Lim & Gary S. Monroe, 2020. "Audit Committee Members’ Reputation Incentives and Their Effectiveness in Monitoring the Financial Reporting Process," Abacus, Accounting Foundation, University of Sydney, vol. 56(3), pages 348-406, September.
    20. Lin, Zhijun & Song, Byron Y. & Tian, Zhimin, 2016. "Does director-level reputation matter? Evidence from bank loan contracting," Journal of Banking & Finance, Elsevier, vol. 70(C), pages 160-176.
    21. Li, Changhong & Li, Jialong & Liu, Mingzhi & Wang, Yuan & Wu, Zhenyu, 2017. "Anti-misconduct policies, corporate governance and capital market responses: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 48(C), pages 47-60.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:37:y:2016:i:9:p:1898-1918. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.