Accounting

Elon Musk Wants to Get Paid. He Will Get His 2019 Bonus Thanks to an Accounting Magic

In March 2018, Tesla’s Board of Directors granted Musk a potential bonus of 20,264,042 stock option awards under a  plan that uses “adjusted EBITDA” as one...

The Solution to the Auditing Industry’s Oligopoly Problem? More Competition

The UK’s reviews of the Big Four auditing firms have largely adopted an approach of more regulation and government oversight. This approach is not...

Big Four Audit Firms Enjoy a “Too Few to Fail” Regulatory Hall Pass

The failure of Enron and subsequent demise of Arthur Andersen led to significant changes for public reporting and auditing but not much change in...

Blockchains and Corporate Finance: “In a Blockchain Market, Shareholder Activists Might Play Much Less of a Role”

Will blockchain technology lead to less shareholder activism and higher executive compensation? Watch David Yermack’s full Stigler Center lecture on the potential implications of blockchain...

Will PwC Throw the Red Card on its Swiss Firm Over FIFA?

PwC took over as auditor of the corruption-plagued global football body last year, with the intention of  reforming it. So how is it that...

How the Global Audit Firms, Led by Deloitte, Are Using Their Lobbying Clout to Dilute Sarbanes-Oxley Reforms

A look at the Big Four’s congressional lobbying activity shows the auditors and their trade association taking advantage of the “Trump” window to roll...

PwC and the Oscars: When Auditors Take Investors to La La Land

PwC suffered an enormous blow to its reputation following the Oscars because the ceremony is highly visible and the failure was simple to understand. But the accounting giant has experienced many blunders in the last...

LATEST NEWS

Lifting Lockdown Measures Won’t Bring Back Lost Jobs, New Study Suggests

A new paper examines data on local outbreaks in South Korea and finds that even in the absence of lockdowns, an increase...

What Comes Next for Economic Policies to Combat Covid-19? A Conversation Between Six Booth Faculty

As the Covid-19 crisis evolves from a temporary shock into what seems like a long-term catastrophe, six finance scholars from Chicago Booth—Douglas...

A New Stigler Center Case Study Explores the Link Between Italy’s Morandi Bridge Disaster and Crony Capitalism

Two years ago, the Morandi bridge collapse claimed 43 lives. Based on financial statements, Italian government documents, and interviews with independent experts...

Few Bad Apples? New Study Finds That 40 Percent of Officers in a Large Police Force Are Discriminatory

A new paper seeks to examine whether police misbehavior is concentrated or diffuse by identifying whether highway patrol officers in Florida are...

Bethany McLean’s Weekend Reading List: Wirecard, Shale Oil, and the Fall of Chuck E. Cheese

Corruption, lobbying, corporate malfeasance, and frauds: a weekly unconventional selection of must-read articles by investigative journalist Bethany McLean.