EMPIRICAL MODEL : We investigate fi

EMPIRICAL MODEL : We investigate financial accounting restatements filed with the Securities and Exchange Commission between January 1997 and June 2002. Restating companies are matched with non-restating companies based on year, company size, and industry (similar to Dechow et al. 1996). We use a logit model where the dependent variable takes on a value of 1 for restating companies, and 0 otherwise. We model accounting restatements as a function of the CFO’s years of experience as a CFO, possession of prior experience with a different company, possession of an M.B.A. degree, and possession of a CPA certification. In addition, we include control variables in the model that prior research identifies as important determinants of restatements. The inclusion of these additional variables should improve the power of our tests. Our model may be summarized as follows: