Sunday, June 8

CFOs of Earnings-Restatement Firms Experience Higher Turnover

Well, I guess this was one of those no shit Sherlock moments, but its good to get it confirmed. I quote liberally from this release.

found higher turnover rates and severe labor-market penalties for chief financial officers of so-called restatement firms – firms asked to restate their earnings – compared to a control group of similar firms........They discovered that Sarbanes-Oxley tightened reporting and accounting procedures in response to major corporate scandals, such as those at Enron and WorldCom, in the late 1990s and early 2000s......... found that CFOs have suffered greater labor-market penalties after Sarbanes-Oxley. In other words, CFOs associated with restatement firms had more difficulties finding similar positions with other firms or, in some cases, finding employment at all after the federal law was enacted.

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