The study looked at how certain ways companies are run affect the chances of them having to correct their financial reports. They looked at 159 U.S. companies that had to fix their earnings, comparing them to similar companies that didn't. They found that having independent directors with financial knowledge on the board or audit committee can lower the chances of errors in financial reporting. On the other hand, companies where the CEO is from the founding family are more likely to have to correct their earnings. This shows that having knowledgeable independent directors can help keep a check on a company's financial reporting practices.