This paper studies two distinct roles that transfer prices play within multinational enterprises operating in two tax jurisdictions. Assuming that the multinational enterprise chooses one transfer price for tax purpose and another for providing incentives to its subsidiary's manager, we analyze...

This study aimed at establishing the degree of influence of cost elements on the productivity of manufacturing companies. The study made used of a survey research design method and data were obtained through questionnaire and analyzed with the Ordinary Least Square (OLS) method. The study...

We propose and find that enhanced regulatory transparency facilitates alignment between private and public enforcement. Utilizing the SEC's 2004 decision to publicly disclose its comment letters, we explore the actions of a public enforcer (the SEC) and a private enforcer (shareholder...

We examine whether managers convey more information via voluntary disclosure channels when standard-setters limit managers' discretion in GAAP. We estimate the extent to which standard setters limit managers' discretion by counting the number of times obligatory modal verbs are mentioned in the...

Politicians frequently intervene in the regulation of financial accounting. Evidence from the accounting literature shows that regulatory capture by special interests helps explain these interventions. However, many accounting rules have broad economic or social consequences, such as their...

Financial restatements are costly, but frequent, events and many firms restate several times. This paper asks why rational managers engage in misreporting, in spite of the costly consequences. We present a simple extension to the Fischer and Verrecchia (2000) model, which provides testable...

In the wake of the 2008 financial crisis, Robert Engle and colleagues at New York University developed the NYU Stern Systematic Risk Model (SRISK), a market-based substitute for regulatory measures of systemic risk of financial institutions. This study identifies four shortcomings of SRISK....

Although theory suggests its importance, empirical evidence on the relation between exogenous termination risk and contracted compensation packages is limited. This study takes a different approach by exploring determinants of contracted annual compensation and severance packages for city...

Uniformity, the use of a common accounting measurement, is an essential feature of financial reporting, yet its desirability has long been debated. We study a model in which firms decide whether to adopt either their local accounting methods or a common method, followed by an investor allocating...

Politicians frequently intervene in the regulation of financial accounting. Evidence from the accounting literature shows that regulatory capture by special interests helps explain these interventions. However, many accounting rules have broad economic or social consequences, such as their...