Corporate acquisitions are arguably one of the most important and biggest decisions CEOs have to make; yet many acquisitions do not create value for shareholders. We examine whether CEO compensation is reduced when the fair value of the acquired business units are written down (i.e. goodwill...

In this study, focusing on the period 1996-2010, we conduct an empirical investigation of how warnings by industry peer firms about future earnings affect CEO compensation structure. These warnings contain information about the industry, signaling dim industry prospects and possibly triggering...

Some CEOs decide voluntarily to issue a warning when they expect a negative earnings surprise. Prior research suggests that warnings contain incremental information beyond actual earnings; warning firms tend to experience permanent earnings decreases. This paper investigates whether compensation...

In the mid-2000s, the European Union (EU) adopted a number of regulatory reforms intended to increase transparency and disclosure for IPO firms, including mandating the use of International Financial Reporting Standards (IFRS). The reforms also included (1) adoption of the Prospectus Directive...

This paper analyzes the behavior of two groups of corporate earnings forecasters: analysts, who follow individual company fortunes, and strategists who predict earnings for various company aggregates. Using data for two market indices, the Samp;P 500 and the Dow Jones Industrial Average, we find...

This study focuses on the relation between current compensation and past performance measures as signals of a CEO’s ability. We develop a simple two-period principal-agent model with moral hazard and adverse selection and test theoretical predictions using CEO compensation data from 1993-2006....

We examine the information role of accounting disclosures on warranties, utilizing a database that became available due to the requirements of FIN 45. First, because firms use warranty policies as a business strategy to promote their products, a warranty reserve can serve two roles: an...

In this paper we study the relationship between costs, input prices and activity levels in medium sized American police departments. Our focus is on determining the functional structure of law enforcement production technology in agencies of this size

This paper examines how disclosures regarding internal controls, required by Sections 302 and 404 of the Sarbanes-Oxley Act of 2002 (SOX), affect the market for corporate control. We hypothesize that acquirers with internal control weaknesses (ICWs) make suboptimal acquisition decisions based on...

We examine the spillover effect of fraud allegations against Chinese companies that became public through reverse mergers (CRMs) instead of IPOs. Both short sellers and regulators took active interests in the frauds allegedly perpetrated by CRMs. Once the public became alarmed by the frequency...