During the financial crisis of 2008, the debate on the accounting profession's role has focused mostly on mark-to-market accounting rules. We argue that there are other weaknesses in the accounting rules as applied to securitizations that pre-date the current crisis. The accrual system that...

We examine how large mutual funds voted their proxies. Data concerning fund voting has recently become available in two new datasets. In the first, mutual funds are required to disclose their policies for making voting decisions. In the second, they are required to disclose how they actually...

Little is known about the economic environments and determinants of the compensation arrangements for outside board members. As delegated monitors of corporate management, board members act as shareholders' agents. Thus, a potential for misaligned interests exists, requiring in turn incentive...

This paper studies accruals operating cash flow and writedowns in 73 firms whose bond ratings were downgraded by Moody's or Samp;P for reasons relating to declining earnings prospects. We find that managers' accounting choices primarily reflect their firms' financial difficulties rather than...

Much of the existing empirical evidence on the use of stock option compensation conflicts with theoretical predictions. This has led some to conclude that the theories are incomplete or that stock option compensation policies are not optimal, on average. However, most studies use data from the...

This study tests whether firms in the electric utility industry alter their compensation policies in response to the recent and dramatic changes that the 1992 Energy Policy Act imposes on their operating and regulatory environment. The 1992 Act intensifies competition in the utility industry by...