Whether the quality of a firms reported earnings affects investors ability to predictfuture earnings and stock returns is still a subject of much debate among accounting researchers.Lev (1989) suggests that low quality earnings may be causing the relatively low correlationbetween reported...

Public criticism ofexecutive pay has increased significantly inrecent years. Shareholders express concernthat the level of pay to many executives doesnot match the level of increase in shareholderwealth. The government has even gotteninvolved in the issue by changing tax lawsrelated to...