This paper provides evidence on the characteristics of firms that include pro forma earnings information in their press releases and on whether the usefulness of pro forma earnings to investors varies systematically with these characteristics. Using a sample of 249 press releases from 1997-99,...

Compensation committees face special difficulties when setting pay in the last years of a CEO's tenure. For example, incentives to manipulate earnings for the purpose of enhancing earnings-based compensation are greater in CEOs' terminal years. We predict that compensation committees are aware...

Compensation committees face special difficulties when setting pay in the last years of a CEO's tenure. For example, incentives to manipulate earnings for the purpose of enhancing earnings-based compensation are greater in CEOs' terminal years. We predict that compensation committees are aware...

The incentive to manipulate earnings to enhance earnings-based compensation increases in managers' terminal years. We examine this horizon problem by considering the role of the compensation committee in setting terminal-year compensation. We predict that compensation committees are aware of the...