Do managers who present misleading financial information lose their jobs?

I should hope so ! Here are a couple of interesting studies that find that managers do face consequences from improper or misleading reporting.

Desai, Hogan and Wilkins (The Reputational Penalty for Aggressive Accounting:. Earnings Restatements and Managing Turnover,2005) examine management turnover and the subsequent re-hiring of displaced managers at firms announcing earnings restatements during 1997 or 1998.

In a sample of 146 firms that announced restatements in 1997 and 1998, they find
that at least one senior manager (Chairman, CEO or President) loses his/her job within 24 months of the announcement of the restatement in 60% of the firms.

See full Article.