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The Crisis of Fair Value Accounting: Making Sense of the Recent Debate
The recent financial crisis has led to a vigorous debate about the pros and cons of fair-value accounting (FVA). This debate presents a major challenge for FVA going forward and standard setters’Expand
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Limited Liability and Incentive Contracting with Multiple Projects
I examine a principal-agent model with multiple projects where a risk-neutral manager is protected by limited liability. The analysis has several interesting implications: (i) incentive problems areExpand
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Did Fair-Value Accounting Contribute to the Financial Crisis?
The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantlyExpand
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Board Committees, CEO Compensation, and Earnings Management
We analyze the board of directors' equilibrium strategies for setting CEO incentive pay and overseeing financial reporting and their effects on the level of earnings management. We show that anExpand
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Board Committees , CEO Compensation , and Earnings Management ∗
We analyze the effect of committee formation on how corporate boards perform two main functions: setting CEO pay and overseeing the financial reporting process. The use of performance-based payExpand
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Financial Instruments, Financial Reporting, and Financial Stability
I review new empirical evidence from the recent financial crisis on the relation between financial reporting and financial stability. I draw the following conclusions: First, there is still noExpand
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Incentives in Internal Capital Markets: Capital Constraints, Competition, and Investment Opportunities
We examine the effect of competition for scarce corporate financial resources on managers' incentives to generate profitable investment opportunities. Operating an active internal capital market isExpand
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Incentives in Internal Capital Markets
The present paper analyzes the effect of competition for scarce corporate financial resources on managers' incentives to generate profitable investment opportunities. Competition is onlyExpand
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Initial public offerings and venture capital in Germany
We present a survey on the role of initial public offerings (IPOs) and venture capital (VC) in Germany after the Second World War. Between 1945 and 1983 IPOs hardly played a role at all and only aExpand
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Financing Risk Transfer under Governance Problems: Mutual versus Stock Insurers
Mutual insurance companies and stock insurance companies are different forms of organized risk sharing: policyholders and owners are two distinct groups in a stock insurer, while they are one and theExpand
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