“…Firms that restate their financials (i.e., "restating firms") are generally perceived to have engaged in misconduct (e.g., Foreman, Whetten, & Mackey, 2012;Greve, Palmer, & Pozner, 2010), resulting in a loss of "social approval" (i.e., acceptance or positive sentiment of broadly defined stakeholders including the general public) (see, for example Bundy & Pfarrer, 2015;Zavyalova, Pfarrer, Reger, & Shapiro, 2012). Prior research has discussed how firms could recover or regain social approval after a transgression (Bachmann, Gillespie, & Priem, 2015;Pfarrer, Decelles, Smith, & Taylor, 2008;Poppo & Schepker, 2010) and also investigated empirically a variety of recovery actions such as executive turnover (Arthaud-Day, Certo, Dalton, & Dalton, 2006), press releases (Chakravarthy, DeHaan, & Rajgopal, 2014), and denial and defense (Lamin & Zaheer, 2012), among other responses (Pace, Fediuk, & Botero, 2010;Pfarrer, Decelles, et al, 2008).…”