Although past studies have paid considerable attention to firm reputation, few have investigated the actions firms take following a reputation-damaging event. We identify firms involved in financial earnings restatement and examine whether naming a successor CEO with specific qualities serves to signal the seriousness of a firm's efforts to restore its reputation. Using theories of market signaling, we argue that attributes of successor CEOs significantly influence the reactions of key external constituencies. In particular, firms with more severe restatement tend to name successors who have prior CEO or turnaround experience and more elite education. The naming of such successors results in more positive reactions from the stock market, financial analysts, and mass media. We argue that these attributes communicate to stakeholders and the broader public about the CEO's credibility and the firm's efforts.