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.
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.
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.
Barth, Mary E.; Ormazabal Sánchez, Gaizka; Taylor, D.J.
The big three rating agencies -- Standard & Poor's, Moody's and Fitch -- have already received plenty of blame for the 2007-08 financial crisis. Now, a new study provides evidence suggesting that their risk assessment procedures for asset securitizations were inadequate.
Fernández Terricabras, Albert
Do you spend enough time planning strategy? Are the meetings you hold actually productive? Do you regularly track and review the results of your short- and long-term strategies, and change them when necessary? Alberto Fernández offers tips for avoiding 12 common pitfalls in strategic planning and follow-up.
Larcker D. F.; Ormazabal Sánchez, Gaizka; Taylor, D.J.
IESE's Gaizka Ormazabal, together with Stanford's David F. Larcker and Wharton's Daniel J. Taylor, studied the market reaction to the introduction of corporate governance regulation. Their findings suggest that increased government interference in the markets may cause negative stock reactions for the firms most affected by the proposed regulation.
Pin Arboledas, José R.; Gallifa, A.; Alvaro, C.; Vilanova, Núria
The number of women sitting on the boards of Spain's benchmark stock exchange companies rose slightly in 2011. Even so, the average representation of female board members still languishes at just over 10 percent. This is one of the findings of the 2011 report on general shareholders' meetings published by the Good Governance and Company Ownership Forum.
Cátedra Crèdit Andorrà de Mercados, Organizaciones y Humanismo
Management control systems ensure that employees pursue the same goals as the company. In their latest working paper, IESE’s Natàlia Cugueró and Josep M. Rosanas find that the impact of organizational justice within these systems cannot be understated.
García Lara, J.M.; García Osma, B.; Peñalva Acedo, Fernando
Business leaders are looking for ways to get the economy moving toward profitability, job creation and growth. A new article suggests that embracing conditional conservatism would be a step in the right direction, enabling companies to lower their cost of capital and reduce uncertainty.
Eccles, Robert G.; Armbrester, Kyle
The disruptive idea of integrated reporting combined with the disruptive innovation of cloud computing will enable companies to make more informed decisions about how they are meeting both financial and nonfinancial performance objectives. The result will be more sustainable company strategies that will contribute to a more sustainable society.