Accounting for Leases and Corporate Investment

Investment, Accounting, and the Salience of the Corporate Income Tax

This paper develops the argument that accounting rules make the corporate income tax less salient and less distortionary by obscuring the timing of tax payments. I develop and estimate a model of investment where firms maximize a discounted weighted average of after-tax cash flows and accounting profits. The cost of capital, the tax wedge on the return on capital, and the impact of tax incentiv...

Accounting for Corporate Behavior

T he year 2002 was one of great tumult for the American corporation. As the year began, news of accounting irregularities at energy giant Enron was unfolding at a rapid pace. These revelations would ultimately lead to the demise of that firm and its auditor Arthur Andersen. But Enron was not an isolated case, as other accounting scandals soon followed at WorldCom and Global Crossing in the tele...

Evaluating and Accounting for Federal Investment in Corporate Stocks and Other Private Securities

Corporate Incentives for Hedging and Hedge Accounting

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Fair-value Pension Accounting, Corporate Risk Management and Pension Investment Policy

This paper investigates whether employer sponsors manage their pension risk exposure as an integral part of firm risk, or manage these two risk exposures separately over an extended period (2003-2010) in the UK, when transition from a disclosure to a recognition pension accounting regime has taken place. We test three competing explanations of corporate pension investment policy: coordinated ri...