The phenomenon of creative accounting has attracted the attention of researchers for decades, especially in the financial sector for its implications on the quality of financial reporting. Although several procedures have been developed by researchers and practitioners to determine any...

Abstract: Das Thema Risikomanagement spielt in vielen Branchen seit einigen Jahren eine große Rolle. So nimmt der Deutsche Corporate Governance Kodex dieses Thema ganz bewusst auf. In dieser Ausarbeitung werden die Grundlagen und die Theorie zum Risikomanagement verständlich dargestellt und...

In this paper, we consider a one shot principal agent problem. The owner of the firm (principal) hires a manager (agent). As firm value is non‐contractible by assumption, an incentive contract is written on accounting income. The manager performs some productive task that increases firm value...