When the Revelation Principle (RP) holds, managing earnings confers no advantage over revelation. We construct an explanation for earnings management that is based on limitations on owners? ability to make commitments (a violation of the RP?s assumptions). Traditionally, earnings management is...

This paper explores "revenue accounting" in contrast to traditional "cost accounting." Revenue accounting is to serve information needs of managers and investors in planning and controlling a firm's sales activities and their financial consequences. Weaknesses of traditional accounting have...

This paper studies implementation in a principal-agent model of adverse selection. We explore ways in which the additional structure of principal agent models (compared to general implementaion models) simplifies the implementation problem. We develop a connection between the single crossing...

Replacive ordering can occur in an alloy in a continuous mode by the development and amplification of concentration waves of appropriate wave vectors, k. Such processes known as spinodal clustering (k∼〈000〉) and spinodal ordering (k defining the relevant superlattice structure) become...

In our paper, an evaluatee can selectively correct individual performance measures which results in the final evaluation being less accurate.