The choice problem between a profit and an investment center revolves around whether it is desirable to delegate investment decision responsibility to a divisional manager who is better informed about the investment opportunities of the division. We show that an accounting performance measure...

Recently, the call for external auditor reports on client internal control structures has come from many fronts (i.e., Public Oversight Board, GAO, FDIC, etc.). The parties calling for these auditor reports typically assert that these auditor reports will serve to reduce management fraud. Before...

The purpose of this dissertation is to extend the communication model to a situation where the agent searches for pre-decision information with effort in his own self-interest. We first introduce the agency model that involves the agent's information-searching behavior, the choice of information...

This dissertation extends previous research on bubbles by investigating whether changes in the financial asset prices of the S&P500 reflect changes in fundamentals. We propose that if this is not the case the volatility is due to a bubble. Hence, this is the general hypothesis from which several...