We investigate whether municipal financial managers face labor market consequences following accounting restatements. The evidence suggests that municipalities that disclose accounting restatements are more likely to experience turnover in the top financial manager position than a control sample...

We find that mean municipal debt costs are greater following financial restatement disclosures. Comparisons of the relative use of municipal debt, and of the use of unsecured versus secured debt, corroborate that financial restatements increase the cost of municipal debt financing. Additional...