Working Papers

This paper develops a multiperiod agency model to study the use of leading indicator variables in managerial performance measures. In addition to the familiar moral hazard problem, the principal faces the task of motivating a manager to undertake…

This paper reports the results of a research project addressing the current state of e-procurement technologies. It analyzes which companies are moving fast into these technologies, how experimentation is taking place to learn about the business…

We examine the association between the provision of non-audit services and earnings quality. Because of concerns regarding the effect of non-audit services on financial reporting credibility, the Securities and Exchange Commission recently issued…

We examine the SEC’s 1992 proxy reforms that expanded the amount of information about executive pay that is required to be disclosed in corporate proxy statements and permitted shareholders to file proxy proposals about executive compensation.…

Abstract not available.

This paper examines whether mandated market risk disclosures under the SEC Financial Reporting Release No. 48 (FRR 48) provide useful information to investors regarding firms’ risk exposures. To provide evidence on this issue we investigate…

This paper investigates the role of non-financial performance measures in executive compensation. Using a sample of Internet firms we document that web traffic, an important non-financial measure for firms in the Internet industry, is positively…

After a string of years in which security analysts top stock picks significantly outperformed their plans, the year 2000 was a disaster. During that year the stocks least favorably recommended by analysts earned an annualized market-adjusted…

This paper examines the effects on the informativeness of software companies financial statements of limiting the amount of discretion with respect to software revenue recognition following the issuance of Statement of Position 91-1 in 1992. The…

This paper examines the dynamic role of financial resources-available through rounds of venture capital financing-on the growth strategies of startups. We investigate three different roles and their evolution over time. 1) We examine whether…

This paper examines whether property-casualty insurance companies manage earnings to influence investor expectations at the time of equity issuances. Our tests focus on the discretionary component of a material accounting accrual recognized by…

This paper uses a trading volume analysis to examine the extent to which SEC-mandated disclosures make firms’ market risk exposures more transparent to investors. We hypothesize that if the SEC’s quantitative market risk disclosures reduce…

Claims have often been made that the quality of the online customer experience in terms of web site ease of use, selection of goods offered, quality of customer service, the effectiveness of virtual community building, and site personalization…

In this study we investigate the role played by managerial actions in explaining stock market returns and accounting earnings of 57 Internet firms engaged in Business-to-Business (B2B) e-commerce. We classify 3,166 managerial actions undertaken…

This study investigates the use of variable compensation to motivate product development managers and its impact upon the performance of product development projects. Grounded on measurement theory, the paper presents a model to explore the…

The accounting for business combinations has long been one of the most controversial financial reporting issues, generating numerous opinions and interpretations by the American Institute of Certified Public Accountants (AICPA), Financial…

We find that web traffic is relevant for explaining market values and stock returns of pure Internet companies after controlling for accounting information such as book and values earnings. However, we find weak associations between web traffic…

Venture capital firms have unique capabilities in terms of dealing with high uncertainty, high degrees of information asymmetry, and providing access to a strategic network. This study examines the association between the presence of venture…

This study examines the relation between analyst coverage and firms’ intangible assets. We assume that firms with substantial intangible assets, most of which are not recognized in firms’ financial statements, have more information asymmetry…

This study investigates whether CEOs manage investors’ expectations downward to scheduled stock option awards. Because executive stock options are typically awarded with a fixed exercise price equal to the stock price on the award date, we…