After conversion reporting, firms are motivated to improve their market confidence and improve their information environment. One possible strategy is to achieve control for the "lightning rod", receives considerable media attention: accounting changes related to increasing conservatism and transparency. This opportunity is on the market in the form of stock options and variable interest entities - special family of the person who caused the attention, as a consequence, their role in the failure of Enron. Companies send those loud signals accounting rewarded. An "event-study" approach of quantitative increase in the market-adjusted return of the test portfolio companies when they send their signals. This is evidence that the alarm adds value for shareholders has implications for policy setters and market participants. Believes, with supporting and motivating in terms of quality monitoring revenue analysis and management "worst boards" lists. "Hide
by Wanda A. Wallace Source: California Management Review 20 pages. Publication Date: August 1, 2004. Prod. #: CMR294-PDF-ENG
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