- C Nobes, German Acounting Explained: Reducing the Barriers to Measuring Company Performance in Europe's Largest Economy (London, FT Finance: Pearson Professional, 1997).
- See G Meeks and J G Meeks, Towards a Cost-Benefit Analysis of Accounting Regulation (London, Institute of Chartered Accountants in England and Wales, Centre for Business Performance, 2002).
- The classic analysis of market shutdown in response to information asymmetry is provided by GA Akerlof, “The market for ‘lemons’: quality uncertainty and the market mechanism” (1970) 84 Quarterly Journal of Economics 488. The fall in share prices following the Enron, Xerox and WorldCom accounting scandals is interpreted by some as just such a reaction.
- WH Beaver, Financial Reporting: An Accounting Revolution (New Jersey, Prentice Hall, 3rd edn, 1998; M Bromwich, Financial Reporting Information and Capital Markets (London, Pitman, 1992).
- P N McMonnies, ed., Making Corporate Reports Valuable (London, Kogan Page with Institute of Chartered Accountants of Scotland, 1989) 40.
- London Stock Exchange, Guidance on the Dissemination of Price Sensitive Iinformation, London, 1995. For the current guidance on the dissemination of price sensitive information, see http://www.fsa.gov.uk/pubs/uk/lr_guidance-app2-3.pdf.
- The graph shows no result for 1999. This is because of a change in accounting date.
- This issue is developed, for example, in G Meeks, “Profit forecasts in the annual report: the problem of economic assumptions” (1998) 30 British Accounting Review 159.
- Financial Accounting Standards 141, Business Combinations, and 142, Goodwill and Other Intangibles (Norwalk, Ct, Financial Accounting Standards Board, 2001).
- See, eg, A W Goudie and G Meeks, “The exchange rate and company failure in a macro-micro model of the UK company sector” (1991) 101 Economic Journal 444.
- P Asquith, A Beatty and J Weber, “Performance pricing in debt contracts”, 2002, MIT, available at www.nber.org/∼confer/2002/si2002/webber.pdf.
- For extended discussion of earnings management, see, for example, I Griffiths, New Creative Accounting (London, Macmillan, 1995) and T Smith, Accounting for Growth (London, Century, 2nd edn, 1996).
- M C Jensen and K J Murphy, “Performance pay and top management incentives” (1990) 98 Journal of Political Economy, 226.
- C Ayres, “$845m bonanza for Enron team”, The Times, 18 June 2002, 23.
- See, eg, J Fox, “Learn to play the earnings game (and Wall Street will love you)”, Fortune, 31 March 1997, 77.
- P Behr, “Broadband strategy got Enron in trouble”, Washington Post, 1 January, 2002, E1-2.
- For evidence on such contracts see, eg, R J Indjejiklan, “Performance evaluation and compensation research” (1999) 13 Accounting Horizons 147.
- On which, see R Leathley, “Investors criticise Railtrack options scheme”, The Times, 22 July 1999, 29.
- E F Fama, “Efficient capital markets: a review of theory and empirical evidence” (1970) 25 Journal of Finance 383.
- Modern Company Law for a Competitive Economy: Final Report Vol I (London, DTI, 2001, URN 01/942), para 8.6.
- Ibid, para 8.8.
- Ibid, para 8.9.
- Ibid, para 8.11.
- K Wild and B Creighton, GAAP 2001 (London, ABG, 2001).
- Modern Company Law for a Competitive Economy: Final Report Vol I (London, DTI, 2001, URN 01/942), para 8.38.
- D Kynaston, The City of London, vol. IV: A Club No More (London, Chatto and Windus, 2001) 7. The dealer was Arthur Trinder of Union Discount.
Journal of Corporate Law Studies
Volume 3, 2003 - Issue 1