A detailed analysis of firms subject to SEC Accounting and Auditing Enforcement Releases (AAERs) in the 1990s and 2000s suggests that approximately one-quarter are the result of an act that is consistent with legal standards of intent. In the remaining three quarters, the initial misstatement...

As restricted stock is increasingly important in compensation packages, understanding its unique institutional features becomes paramount. We study the interplay between tax and incentive attributes to show how management appears to be utilizing a unique tax election to generate firm benefits....