Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Accounting
The Determinants And Consequences Of Disclosure Committee Adoption, Lyle Roy Schmardebeck
The Determinants And Consequences Of Disclosure Committee Adoption, Lyle Roy Schmardebeck
Graduate Theses and Dissertations
After the passage of the Sarbanes-Oxley Act of 2002, the Securities and Exchange Commission recommended that companies voluntarily adopt disclosure committees to aid in preparing company disclosures. In this paper, I investigate the determinants and consequences of disclosure committee adoption. I find that companies with material weaknesses in internal controls over financial reporting and less readable 10-K filings are more likely to adopt disclosure committees. In consequences analyses, using a propensity score matched control sample and a difference-in-differences research design, I find that 10-K filings are longer and less readable after disclosure committee adoption. However, consistent with institutional theory, I …
The Determinants And Consequences Of Ceo Cheap Stock In Ipos, Michael Dennis Stuart
The Determinants And Consequences Of Ceo Cheap Stock In Ipos, Michael Dennis Stuart
Graduate Theses and Dissertations
The term "cheap stock" describes undervalued stock options granted to CEOs and other key employees prior to initial public offerings (IPOs). Pre-IPO firms have incentives to issue cheap stock as compensation because it results in lower compensation expense on the income statement and in large cash windfalls to CEOs subsequent to the IPO. Because cheap stock results in an overstatement of earnings, the Securities and Exchange Commission frequently challenges the valuations of these grants, which makes cheap stock a key accounting issue in many IPOs. Using a sample of firms that completed IPOs between 2004 and 2007, I investigate the …