The global financial crisis in 2008 increased the number of business failures in the U.S. as well as in China. The Chinese economy has also been affected by the recent global financial crisis given the fact that the Chinese economy depends heavily on international trade. Our study tries to find...

The SFAS 123R comment process generated over 6,500 comment letters, most of which were against the standard’s enactment. This outpouring of emotion indicates that many believe that disclosure versus recognition matters. Our paper provides evidence for the debate whether managers’ discretion,...

We investigate the effect of stock option backdating on the information risk of accused companies. This research provides evidence concerning the consequences that a change in this risk may have on equity values after discovery that companies participated in this questionable behavior. We...