For several decades, policy analysts have debated whether to establish ex ante caps on damages that audit firms face for violating state or federal law in their audits of public companies. A common argument supporting caps is a claimed inability of audit firms to obtain requisite external...

We examine whether conflicts of interest with investment banking and brokerage induce sell-side analysts to issue optimistic stock recommendations and, if so, whether investors are misled by such biases. Using quantitative measures of potential conflicts constructed from revenue breakdowns of...

Accounting for stock options and executive remuneration have been one of the most debated and controversial issues in accounting regulation and corporate governance. The purpose of this study was to analyse the impact of the mandatory adoption of IFRS 2 for accounting of stock options in Italian...

The burst of a financial bubble in 1990 triggered a long recession in Japan. Ensuing massive bad loan problems plagued Japanese banks, many of which faced bankruptcy. Japanese firms also suffered from the massive excess capacity that their banks' bad loans financed. Japanese firms no longer had...

The association of a country's investor protection regime with the quality of reported earnings is examined for a large sample of firms from 42 countries. Three attributes of earnings are evaluated: the magnitude of the association of a country's investor protection regime with the quality of...

This article contributes to the new governance literature by analyzing how private parties profit from standards. Scholars previously have focused on what I call first-order profits from the right to extract rent directly from the ownership or application of standards. But some parties also make...

The paper has described and examined the most relevant corporate governance developments in Italy, taking into account both the normative developments, such as laws and codes of conducts, as well as actual developments in corporate practices. Taking into accounting the ownership and control...

Recently, an enactment designed to create a legal system for banking agencies in Japan to improve depositors' benefits based on the required structural changes of Japanese financial and capital markets was approved and promulgated. The author compares the U.S. and Japanese banking law systems,...

This article evaluates whether the Tokyo international capital market can play a major role in the realm of international finance and what it must do to get there. The historical development and relevant laws and regulations governing the operation of this market are discussed. In addition, this...

Since the Japanese accounting method is a unique one of its own, Japanese companies trying to finance overseas are expected to be requested to disclose their performances based on the foreign countries' standards, or to disclose the tables for adjusting differences with these standards. It will...