To deter financial misstatements, many companies have recently adopted compensation recovery policies – commonly known as “clawbacks” – that authorize the board to recoup compensation paid to executives based on misstated financial reports. Clawbacks have been shown to reduce financial...

In this study, we examine the relationship between a firm’s lobbying activities and financial reporting quality using a U.S. setting where public scrutiny of corporate political activities is high. More importantly, we examine whether and how a firm’s visibility shapes the relationship...

We examine real-activity based earnings management, i.e., cuts in discretionary spending to report small profits, across introductory, growth and mature stage firms. We use the cash flow components to classify a firm's life cycle. We predict and find that firms in the mature stage, on average,...