CGRI research spans these topics: general principles, board of directors, leadership and succession planning, compensation, audit and risk, shareholders, and proxy advisory.
Performance-Based Incentives for Internal Monitors
This study examines the use of performance-based incentives for internal monitors (general counsel and chief internal auditor) and whether these incentives impair monitors independence by aligning their interests with the interests of those being…
Baker Hughes, Foreign Corrupt Practices Act
In 2002, Baker Hughes was accused of violating the Foreign Corrupt Practices Act (FCPA). This case describes the actions taken by the company in response to those accusations. These include hiring a third-party law firm to undertake an…
Equity on Demand, The Netflix Approach to Compensation
Netflix was among a small group of Silicon Valley companies to emerge from the technology bubble of the late 1990s a clear winner in terms of growth, market share, and profitability. That Netflix was able not only to prevail over this competition…
Multimillionaire Matchmaker, An Inside Look At CEO Succession Planning
Sharks in the Water, Battling an Activist Investor for Corporate Control (B)
Sharks in the Water, Battling an Activist Investor for Corporate Control (A)
The Stock Market's Pricing of Customer Satisfaction
A number of recent marketing studies examine the stock market’s response to the release of American Customer Satisfaction Index (ACSI) scores. The broad purpose of these studies is to investigate the stock market’s valuation of customer…
Discussion of “The Impact of the Options Backdating Scandal on Shareholders” and “Taxes and the Backdating of Stock Option Exercise Dates”
Bernile and Jarrell provide extensive analysis regarding the impact of backdating the stock option exercise price on stock returns for a sample of firms identified by the Wall Street Journal. Dhaliwal, Erickson,…
Royal Dutch/Shell, A Shell Game with Oil Reserves (A)
Royal Dutch/Shell, A Shell Game with Oil Reserves - Governance Overhaul After Scandal (B)
The Power of the Pen and Executive Compensation
We examine the press’ role in monitoring and influencing executive compensation practice using more than 11,000 press articles about CEO compensation from 1994 to 2002. Negative press coverage is more strongly related to excess annual pay than to…
Attention Shoppers, Executive Compensation at Kroger, Safeway, Costco and Whole Foods
Financial Restatements: Methods Companies Use to Distort Financial Performance
Models of Corporate Governance. Who's the Fairest of Them All?
In 2007, corporate governance became a well-discussed topic in the business press. Newspapers produced detailed accounts of corporate fraud, accounting scandals, excessive compensation, and other perceived organizational failures—many of which…
Perfomance-Based Compensation in Professional Service Firms: An Examination of Medical Group Practices
We examine the importance of agency considerations for the mix of salary and performance-based compensation in member-owned medical practices. Performance-based pay increases with the informativeness of clinical productivity measures, and…
Corporate Governance, Accounting Outcomes and Organizational Performance
The empirical research examining the association between typical measures of corporate governance and various accounting and economic outcomes has not produced a consistent set of results. We believe that these mixed results are partially…
Endogeneity and Empirical Accounting Research
The discussion reinforces and expands on some of the fundamental issues about endogeneity raised by Chenhall and Moers (European Accounting Review, this issue, pp. 173–195). We focus on the econometric problems researchers encounter when…
10b5-1 Plans, Mortgaging a Defense Against Insider Trading
AMB Property Corporation, Financial Reporting in the REIT Industry
AOL Time Warner (A): Accounting for Goodwill
AOL Time Warner (B): Recognition of Goodwill Impairment
This case reviews the recognition of goodwill impairment taken by AOL Time Warner following the adoption of SFAS 142, Goodwill and Other Intangible Assets. This case is the successor of A-196A, AOL Time Warner (A): Accounting for Goodwill.
Corporate Governance Ratings, Got the grade… What was the test?
In 2007, there were three prominent corporate governance ratings firms—The Corporate Library (TCL), Governance Metrics International (GMI), and Institutional Shareholder Services (ISS). These firms assessed the effectiveness and deficiency of the…
Earnings Conference Calls, Hewlett-Packard Company
Executive Compensation at Nabors Industries, Too Much, Too Little, or Just Right?
Eugene Isenberg, CEO of Nabors Industries, was listed in a 2006 Wall Street Journal article as one of the highest paid executives in the U.S. over the previous 14 years. He received this compensation as a result of a unique bonus arrangement and…