Active Intermediation In Overlapping Generations Economies With Production And Unsecured Debt, 2016 Iowa State University
Active Intermediation In Overlapping Generations Economies With Production And Unsecured Debt, Mark Pingle, Leigh Tesfatsion
It is well known that the first welfare theorem fails for the pure exchange^overlapping generations economy studied by Samuelson (1958) and for the private production overlapping generations economy studied by Diamond (1965). Tirole (1985) combines and extends the Samuelson and Diamond frameworks by permitting both unsecured debt and private pro duction and shows that the first welfare theorem stillfails to hold. This paper shows that the reason for this failure is that intermediation is niodelled as a purely passive coordination ac tivity implemented by a Walrasian Auctioneer.
Governmental Intervention In An Economic Crisis, 2016 University of Southern California Law
Governmental Intervention In An Economic Crisis, Robert K. Rasmussen, David A. Skeel Jr.
This paper articulates a framework both for assessing the various government bailouts that took place at the onset of Great Recession and for guiding future rescue efforts when they become necessary. The goals for those engineering a bailout should be to be as transparent as possible, to articulate clearly the reason for the intervention, to respect existing priorities among investors, to exercise control only at the top level where such efforts can be seen by the public, and to exit as soon as possible. By these metrics, some of the recent bailouts should be applauded, while others fell short. We ...
Relation Between Auditor Quality And Corporate Tax Aggressiveness: Implications Of Cross-Country Institutional Differences, Kiridaran Kanagaretnam, Kiat Bee Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo
Research Collection School Of Accountancy
Using an international sample of firms from 31 countries, we study the relation between auditor quality and corporate tax aggressiveness. Employing an indicator variable for tax aggressiveness when the firm's corporate tax avoidance measure is within the top quintile of each country-industry combination, we find strong evidence that auditor quality is negatively associated with the likelihood of tax aggressiveness, even after controlling for other institutional determinants such as home-country tax system characteristics. We also find that the negative relation between auditor quality and the likelihood of tax aggressiveness is more pronounced in countries where investor protection is stronger, auditor ...
How Corporate Culture Impacts Unethical Distortion Of Financial Numbers, 2016 University of Dayton
How Corporate Culture Impacts Unethical Distortion Of Financial Numbers, Joseph F. Castellano, Kenneth Y. Rosenzweig, Harper A. Roehm
The recent accounting scandals have highlighted the critical role that investor confidence in the accuracy and lack of distortion of accounting data plays in the health of capital markets and, indeed, the whole economy. The legal and moral culpability of top-level company managers (as well as auditors) is an issue that will be addressed by the nation in the coming months. Whether or not legal sanctions are imposed on managers, it would be well to examine some of the reasons managers may feel compelled to distort accounting numbers as well as engage in other actions that damage the interests of ...
The Abcs Of Communicating Results, 2016 University of Dayton
The Abcs Of Communicating Results, Deborah S. Archambeault, Morgen Rose
Communicating results is an integral part of the internal auditor's job, and The IIA's International Standards for the Professional Practice of Internal Auditing recognizes its importance by specifying in Standard 2420 that communications should be "accurate, objective, clear, concise, constructive, complete, and timely." In its 2009 survey. The Biggest Internal Audit Challenges in the Next Five Years, Protiviti, a global consulting firm, ranked communication with management and the audit committee as one of the biggest challenges facing internal auditing through 2012. Their subsequent 2010 Internal Audit Capabilities and Needs Survey identified presentation skills as the top "need to ...
Standard Costing Variances: Potential Red Flags Of Fraud?, 2016 Texas State University
Standard Costing Variances: Potential Red Flags Of Fraud?, Cecily A. Raiborn, Janet B. Butler, Lucian Zelazny
This article focuses on how standard cost variances can be used in detecting potential fraudulent activities. Each primary type of variance (material, labor, and overhead) is addressed with a discussion of possible inappropriate causal factors. Additionally, internal controls, graphic techniques, and other methods that can be implemented to combat fraud are provided.
Procurement Fraud, 2016 La Salle University
Procurement Fraud, Lisa Mcnamee
Economic Crime Forensics Capstones
The 2016 Global Economic Crime Survey conducted by PricewaterhouseCoopers LLP (2016), states that twenty-two percent of companies have experienced procurement fraud. The statistics have actually decreased since 2014 when twenty-seven percent of companies had experienced procurement fraud. However, procurement fraud is still one of the most costly fraudulent schemes. Despite the reduction, the Department of Defense continues to experience large procurement fraud cases, both in number and dollar value. A recent example is the Supreme Foodservice fraud case, which cost the Defense Logistics Agency $757 million dollars in fraudulent charges. (Jahner, 2014) The Department of Defense Office of Inspector General ...
Regulation Fd: An Alternative Approach To Addressing Information Asymmetry, 2016 University of Pennsylvania Law School
Regulation Fd: An Alternative Approach To Addressing Information Asymmetry, Jill E. Fisch
This chapter traces the development of the SEC’s use of Regulation Fair Disclosure (FD) to address information asymmetry in the securities markets. The chapter describes the SEC’s developing enforcement policy and notes, in particular, the SEC’s efforts, through its selection and settlement of Regulation FD cases, to provide guidance to corporations and corporate officials about areas of key concern. The chapter concludes by highlighting current areas of particular importance, including disclosure of information through private meetings and the implications of technological innovations such as the internet and social media. The chapter is forthcoming in Research Handbook on ...
Vultures Or Vanguards?: The Role Of Litigation In Sovereign Debt Restructuring, 2016 University of Pennsylvania Law School
Vultures Or Vanguards?: The Role Of Litigation In Sovereign Debt Restructuring, Jill E. Fisch, Caroline M. Gentile
No abstract provided.
Top Cop Or Regulatory Flop? The Sec At 75, 2016 University of Pennsylvania Law School
Top Cop Or Regulatory Flop? The Sec At 75, Jill E. Fisch
In their forthcoming article, Redesigning the SEC: Does the Treasury Have a Better Idea?, Professors John C. Coffee, Jr., and Hillary Sale offer compelling reasons to rethink the SEC’s role. This article extends that analysis, evaluating the SEC’s responsibility for the current financial crisis and its potential future role in regulation of the capital markets. In particular, the article identifies critical failures in the SEC’s performance in its core competencies of enforcement, financial transparency, and investor protection. The article argues that these failures are not the result, as suggested by the Treasury Department Blueprint, of a balkanized ...
The Mess At Morgan: Risk, Incentives And Shareholder Empowerment, 2016 University of Pennsylvania Law School
The Mess At Morgan: Risk, Incentives And Shareholder Empowerment, Jill E. Fisch
The financial crisis of 2008 focused increasing attention on corporate America and, in particular, the risk-taking behavior of large financial institutions. A growing appreciation of the “public” nature of the corporation resulted in a substantial number of high profile enforcement actions. In addition, demands for greater accountability led policymakers to attempt to harness the corporation’s internal decision-making structure, in the name of improved corporate governance, to further the interest of non-shareholder stakeholders. Dodd-Frank’s advisory vote on executive compensation is an example.
This essay argues that the effort to employ shareholders as agents of public values and, thereby, to ...
From Legitimacy To Logic: Reconstructing Proxy Regulation, 2016 University of Pennsylvania Law School
From Legitimacy To Logic: Reconstructing Proxy Regulation, Jill E. Fisch
No abstract provided.
Confronting The Circularity Problem In Private Securities Litigation, 2016 University of Pennsylvania Law School
Confronting The Circularity Problem In Private Securities Litigation, Jill E. Fisch
Many critics argue that private securities litigation fails effectively either to deter corporate misconduct or to compensate defrauded investors. In particular, commentators reason that damages reflect socially inefficient transfer payments—the so-called circularity problem. Fox and Mitchell address the circularity problem by identifying new reasons why private litigation is an effective deterrent, focusing on the role of disclosure in improving corporate governance. The corporate governance rationale for securities regulation is more powerful than the authors recognize. By collecting and using corporate information in their trading decisions, informed investors play a critical role in enhancing market efficiency. This efficiency, in turn ...
Can Internet Offerings Bridge The Small Business Capital Barrier?, 2016 University of Pennsylvania Law School
Can Internet Offerings Bridge The Small Business Capital Barrier?, Jill E. Fisch
No abstract provided.
Cause For Concern: Causation And Federal Securities Fraud, 2016 University of Pennsylvania Law School
Cause For Concern: Causation And Federal Securities Fraud, Jill E. Fisch
The Supreme Court’s decision in Dura Pharmaceuticals dramatically changed federal securities fraud litigation. The Dura decision itself said little, but counseled lower courts to fashion new requirements of causation and harm modeled upon common law tort principles. These instructions have led lower courts to craft a series of confusing and inconsistent decisions that incorporate little of the reasoning upon which the common law principles are based. This Article accepts the Dura challenge and examines both common law causation principles and their applicability to federal securities fraud. In so doing, the Article identifies the failure of the federal courts properly ...
Hedge Fund Activism, Poison Pills, And The Jurisprudence Of Threat, 2016 University of Pennsylvania Law School
Hedge Fund Activism, Poison Pills, And The Jurisprudence Of Threat, William W. Bratton
This chapter reviews the single high profile case in which twentieth century antitakeover law has come to bear on management defense against a twenty-first century activist challenge—the Delaware Court of Chancery’s decision to sustain a low-threshold poison pill deployed against an activist in Third Point LLC v. Ruprecht. The decision implicated an important policy question: whether a twentieth century doctrine keyed to hostile takeovers and control transfers appropriately can be brought to bear in a twenty-first century governance context in which the challenger eschews control transfer and instead makes aggressive use of the shareholder franchise. Resolution of the ...
Aggregate Earnings Surprises, Monetary Policy, And Stock Returns, 2016 Singapore Management University
Aggregate Earnings Surprises, Monetary Policy, And Stock Returns, Lindsey A. Gallao, Rebecca N. Hann, Congcong Li
Research Collection School Of Accountancy
This paper examines whether the negative association between aggregate earnings and returns is explained by the monetary policy news in aggregate earnings. Using Federal funds futures data to construct a measure of policy news, we find that aggregate earnings convey information about the Fed׳s policy actions. Additionally, the negative aggregate earnings-returns association is muted when we control for policy surprises. This result is more pronounced in periods with negative policy surprises, which tend to trigger a more significant market reaction. Taken together, these results suggest that aggregate earnings convey policy news and the market reacts negatively to policy surprises ...
"Other Information" In An Audit (Part 2), 2016 Singapore Management University
"Other Information" In An Audit (Part 2), Foo S.L.
Research Collection School Of Accountancy
In light of the new reporting requirements, SSA 720 (Revised) articulates a systematic approach on Other Information (OI) work. It comprises five key elements. These are Obtaining, Reading and Considering, Responding, Reporting and Documentation of OI (Figure 1). Invariably, these enhancements provide useful guidance to the auditors. With additional prescribed work efforts, it also calls for a greater integration of OI work scope with the overall audit planning.
Socially Responsible Firms, 2016 Singapore Management University
Socially Responsible Firms, Allen Ferrell, Hao Liang, Luc Renneboog
Research Collection Lee Kong Chian School Of Business
In the corporate finance tradition starting with Berle & Means (1923), corporations should generally be run so as to maximize shareholder value. The agency view of corporate social responsibility (CSR) considers CSR as an agency problem and a waste of corporate resources. Given our identification strategy by means of an IV approach, we find that well-governed firms who suffer less from agency concerns (less cash abundance, positive pay-for-performance, small control wedge, strong minority protection) engage more in CSR. We also find a positive relation between CSR and value and that CSR attenuates the negative relation between managerial entrenchment and value.
Does Political Giving Impact Shareholder Wealth? Evidence From State Campaign Finance Reforms, 2016 University of Tennessee, Knoxville
Does Political Giving Impact Shareholder Wealth? Evidence From State Campaign Finance Reforms, Douglas Brian Blank Ii
Does corporate political giving actually affect shareholder wealth? While firms value political participation, some lawmakers oppose corporate involvement in politics. Yet, the existing literature has established a correlation between campaign finance and corporate outcomes without fully documenting a causal relation. I use an innovative database of political giving to exploit changes in state campaign finance laws as an exogenous shock to political giving. Specifically, I use the staggered adoption of externally imposed legal limits to political giving across U.S. states to expose how shareholder wealth responds. I find shareholder wealth declines following legally imposed reductions in political giving. The ...