Some authors distinguish between ``earnings management and ``income smoothing. The former occurs when the manager reports a number different from ``actual earnings to shareholders without facing intertemporal restrictions on the discretionary amount that she reports. In contrast, income...

The paper describes the numerical results obtained when solving an infinitely repeated agency model with strategic income reporting. The model distinguishes itself from previous models of infinitely repeated agency problems on two accounts. First, due to the accrual nature of income reporting,...

Previous results on infinitely repeated agency do not allow income smoothing because it generates interdependence across time periods and private information for managers. Propositions 1-2 and Theorem show how to use dynamic programming to solve the agency problem. By using dynamic programming,...

The paper uses a standard principal agent model to study the merits of separating operational responsibilities and performance reporting. The two tasks are either allocated jointly to one agent or a second agent is hired and tasks are separated. In the latter case, one agent undertakes...

This study examines the performance of chief federal prosecutors (U.S. attorneys) and their subsequent careers. In a sample of 570 attorneys in office from 1969 to 2000, the length of prison sentences is positively related to subsequent favorable career outcomes for U.S. attorneys. In contrast,...