We utilize information only recently disclosed on Form 990 to examine the use, and consequences of, incentive pay at nonprofit organizations. Bonuses are common in nonprofits, as we observe that approximately 45 percent of the forty-four thousand organization-year observations in our sample...

The financial scandal surrounding the collapse of Enron caused erosion in the reputation of its auditor, Arthur Andersen, leading to concerns about Andersen’s ability to continue in existence and ultimately to the firm’s demise. In this paper we investigate the role of corporate governance...

As of February 28, 2006, 958 publicly held companies accelerated the vesting of some or all of their employee stock options in advance of adopting SFAS 123 (R). We examine both the market reaction to these accelerations, as well as the determinants of the decision. Investors, in general, react...

This study investigates the impact of job complexity and firm, as well as CFO-specific performance, on CFO compensation. We find job complexity and overall firm performance affects both CFO salary and bonus, while CFO-specific performance affects CFO bonus. Specifically, we find that CFOs are...

This study examines how generally accepted accounting principles influence firm responses to Securities and Exchange Commission rule changes. It shows that a change in insider holding requirements for employee stock options led to a decrease in the use of stock appreciation rights, a response...

This paper make four important contributions to the accounting literature. First, it shows that discretionary accruals are associated with CEO cash compensation, but that the coefficient is significantly less than that on nondiscretionary accruals. Second, a differential reaction is found to...

In this paper we examine the effect of filing form 10-K on EDGAR on the incidence of small and large trades. We find that the change to EDGAR filings results in significant increases in the volume of small, but not large trades, during the five day window (-1, 3) around the filing date. While...

We examine firms' willingness to forfeit tax deductions in response to Internal Revenue Code Section 162(m). Using a sample of firms over the five-year period subsequent to the effective date of Section 162(m), we find firms forfeit deductions in almost 40 percent of firm-year observations....

We examine the effect of Internal Revenue Service code (IRC) section 4960 of the Tax Cuts and Jobs Act of 2017 (TCJA) which imposed a 21% excise tax on nonprofit employee compensation over $1 million per covered individual. Using a difference-in-differences analysis on IRS Form 990 data for...