study yields unexpected results. First, powerful managers receive higher pay and a contract with a higher pay … are both increasing in the friendliness of the board. Second, we show that friendly boards provide managers with higher … show that powerful managers underinvest in capital but have less incentives to manage earnings …

This paper examines the association between managers' cash bonuses and discretionary accounting choices in a sample of … German stock corporations from 2005 to 2007. We investigate managers' earnings management behavior with respect to their …-increasing accounting choices by managers. In line with prior research, auditor independence is proxied by the amount of non-audit service …