Armstrong, Chris; Larcker D. F.; Ormazabal Sánchez, Gaizka; Taylor, D.J.
What motivates managers to misreport financial results? Many attribute it to misaligned incentives, saying managers will do anything to inflate the value of their own portfolios. A new paper argues that another factor is at play -- namely, the sensitivity of the manager to risk, given that a change in value carries risks as well as rewards. To understand misreporting, both factors need to be taken into account.
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Pin Arboledas, José R.; Gallifa, Ángela; Alvaro, C.
The number of women on the executive boards of Ibex-35 companies has more than doubled since 2008. Even so, women still represent only 13 percent of board members, far short of the European Commission's 40 percent target. This is just one of the findings of an annual report on good governance in Spain, which also registered falling participation among shareholders.
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Cugueró-Escofet, Natàlia; Rosanas Martí, Josep Maria
In the aftermath of recent financial scandals, management control systems (MCS) have entered the debate on business ethics. How people use MCS has a critical impact on the results achieved, argue Natàlia Cugueró-Escofet and Josep M. Rosanas, adding that MCS based on just principles are what lead to optimal business results.
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