The role of corporate boards in improving governance through effective disclosures
By: Paul M. Healy, Krishna G. Palepu
Contributors: Palepu, Krishna G., 1954-; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 02-039; Working paper (Harvard Business School. Division of Research) -- 02-039
Publisher: Division of Research, Harvard Business School
Published: 2001
Place of publication: Boston
Language: eng
Number of pages: 18
Description: Corporate managers are increasingly being faulted for what Chairman Levitt of the SEC calls "accounting hocus pocus." Concerns regarding corporate reporting practices include out-and-out accounting fraud; abuse of accounting discretion, such as excessive restructuring charges and arbitrary write-offs of acquired R&D assets; and questionable accounting choices, such as recognition of barter revenues by some internet companies. There is also concern that companies are manipulating investor expectations through "whisper forecasts," or "managing" their reported earnings to meet unrealistic Wall Street expectations. To remedy these problems, corporate governance advocates are challenging boards of directors to play a more prominent role in overseeing the quality of their firm's financial reporting and communication with shareholders.
Notes: "April 2001."

Includes bibliographical references.