We assess the bond market response to the Bear Stearns rescue in March 2008 and the Lehman Brothers failure (combined with news about the acquisition of Merrill Lynch and AIG's investment banking problems and subsequent rescue) in September 2008. The Bear Stearns rescue elicited a moderately...

The literature on income smoothing focuses on the effect of earnings smoothing on the equity market. This paper investigates the effect of income smoothing on the debt market. Using the Tucker-Zarowin (TZ) statistic of income smoothing, we find that firms with higher income smoothing rankings...

Purpose: The purpose of this paper is to determine if the failure of the Securities and Exchange Commission (SEC) to persecute Madoff is, in fact, an ethical failure. The authors turn to the extension of Aristotelian theory of moral values, virtue epistemology, to identify specific failures....