In this paper we examine the relationship between the strength of a firm's shareholders rights, as part of their overall corporate governance structure, and the discretionary financial reporting choices made by the firm's financial executives. Specifically, we examine the strength of...

We examine how shareholders' trust in managers is affected by the outcome of earnings management (inconsistent vs. consistent with shareholders' interests) and the method of earnings management (accruals vs. real methods). Using a controlled experiment, we predict and find that trust is impaired...

We examine how shareholders' trust in managers is affected by (1) the outcome of earnings management (inconsistent vs. consistent with shareholders' interests) and (2) the method of earnings management (accruals vs. real methods). Using a controlled experiment, we predict and find that trust is...

We examine the effectiveness of institutional investors in constraining aggressive earnings management induced by strong contractual incentives. To this end we focus on the consequences of earnings-related promises (covenants) negotiated between corporate controlling shareholders and minority...

Author examines the situation while the parent company controls the subsidiary and the subsidiary possess the sharing at the parent company equity. A formula for effective holding is derived and proofed for a parent-subsidiary simplified structure. A short overview of the audit consequences is...

This study examines the effect of shareholder scrutiny of tax issues on corporate tax behavior. Specifically, we examine the factors associated with receiving shareholder tax litigation and the effect of such litigation on the future tax behavior of both the sued firm and its peers. We find...