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FRED H.M. GERTSEN Riding a Tiger wi
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Riding a Tiger without Being Eaten
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Acknowledgments Boundary spanning c
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neighbours with Thomson Financial (
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12 Table of Contents Acknowledgment
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14 3.2.2 Nature of Analysts’ Expe
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16 List of Figures Figure 1.1 Numbe
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18 List of Tables Table 1.1 Inciden
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Introduction and theoretical backgr
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24 Chapter 1 1.1 Introduction and H
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26 look after the interests of stak
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28 and pride. Mandeville writes:
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30 associated with their views on r
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32 period adjustment by restating t
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34 by 71 per cent on average (as me
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36 Next to these reports, which wer
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38 the new millennium, considered p
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40 cent in 2005. Also in the same p
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42 1997-2006’ (Scholz, 2008); com
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44 Lieberman put it in an October 2
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46 major accountability breakdowns
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48 1.3 Review of Academic Studies i
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50 measured in basis points over Li
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52 of poor governance have been add
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54 accurate corporate financial sta
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56 1.3.6 restatements and contagion
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58 after having been dismissed, the
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60 Wall Street Journal was the whis
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62 CEO job demands, and factors rel
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64 illustrations and Figures Figure
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66 table 1.1 iNcideNce oF restateme
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68 (Wiesenfeld, Wurthmann, & Hambri
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70 personality traits that people a
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72 Figure 1.5 reputatioN aNalyses b
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74 surface. A celebrity CEO receive
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76 Financial statements also serve
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78 For our purposes, important driv
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80 Figure 1.6 study overview backgr
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82 Therefore, our first research qu
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84 of senior management, independen
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86 American Institute of Certified
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88 and explain the context of the C
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90 Chapter 2 Study 1: Restatement C
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92 • Effects on market capitaliza
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94 2.2 Theoretical Framework: Class
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96 Figure 2.1 perceived iNteNt aNd
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98 2.3 Methods We developed our cla
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100 memos in various levels. This s
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102 at the beginning of the crisis.
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104 Figure 2.3 issues iNFlueNciNg p
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106 leads to a questioning of the c
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108 communication most likely leads
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110 able to withstand such mounting
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112 to errors made in the past on s
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114 What is remarkable is the relat
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116 Anderson, Mansi & Reeb, 2004).
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118 was executive responsibility fo
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120 Compliance with standards and c
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122 and standalone companies…, 12
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124 to provide an estimate of the e
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126 Although Freddie Mac’s restat
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128 is too high for most executives
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130 2.6 Conclusions and Discussion
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132 Chapter 3 Study 2: Analysts’
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134 Compustat database. However, st
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136 3.2 Theoretical Framework and P
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138 employers and anyone who uses a
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140 marketplace. Contrary to other
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142 Stracca (2004: 383) notes: A si
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144 In determining financial report
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146 other, the degree to which anal
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148 Conversely, regarding the secon
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150 incentives from option compensa
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152 d. There is excessive pressure
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154 3.3.4 HyPotHeses ceo dominance
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156 Hambrick (2007) notes that this
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158 H7a: The more competent the ana
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160 high degree of pressure on the
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162 reporting. Their research exten
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164 3.4 Analysts’ Survey Design a
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166 of significant restatement comp
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168 Therefore, it was to be expecte
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170 covering a part of the model as
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172 (which we label Period B). Howe
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174 A six-point Likert-type scale w
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176 continuAtion tABle 3.1 reliABil
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182 were posed for the restatement
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184 resolution period. Therefore, w
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186 to which the CEO provided adequ
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188 Earnings Management Pressures T
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190 announcement. Nevertheless, we
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192 table 3.5 Factor loadiNgs bouNd
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194 items loaded on the factors rep
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196 3.5 Analysis of Survey Results
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198 In Table 3.9, it can be seen th
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200 table 3.10 comparisoN oF meaNs
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table 3.11 comparisoN oF meaNs For
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204 blame taking behaviour, or blam
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206 the CEO do not have a significa
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208 Influence of restatement severi
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210 table 3.17 meaNs oF coNstructs
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212 table 3.18 overview oF hypothes
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214 Regarding the other factors tha
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216 measurement by the same instrum
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218 Chapter 4 Study 3: Interviews w
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220 functioning of a CEO. We will c
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222 We split the factors for this i
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224 and Kubik (2003) find that job
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226 4.3 Methods The 23 in-depth int
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228 4.3.2 Procedures and interview
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230 You were involved with the (Com
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232 4.4 Data Analysis and Empirical
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234 4.4.3 interview results and tab
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236 CEO Qualities (Q5 How did the f
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238 Surprised about restatement (Q
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240 Red flags (Q 13 In hindsight, w
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242 4.6 Conclusions and Discussion
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244 Chapter 5 Overall Conclusions a
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246 avoid reputation damage, both a
Page 249 and 250: 248 This chapter will continue as f
Page 251 and 252: 250 5.2 Key Findings from Our Studi
Page 253 and 254: 252 and gatekeepers (including anal
Page 255 and 256: 254 of Investigations, 2002) and Po
Page 257 and 258: 256 prior awareness of all of the i
Page 259 and 260: 258 Legislators and regulators have
Page 261 and 262: 260 while negative events are attri
Page 263 and 264: 262 1. Encourage companies to provi
Page 265 and 266: 264 Figure 5.2 aNalysts oNly: Norma
Page 267 and 268: 266 5.4 Discussion Themes 5.4.1 wHa
Page 269 and 270: 268 profession management aspects,
Page 271 and 272: 270 with standards or procedures. A
Page 273 and 274: 272 Corporate dishonesty has also b
Page 275 and 276: 274 information they receive from e
Page 277 and 278: 276 and contractual parameters of t
Page 279 and 280: 278 from overconfidence (Daniel et
Page 281 and 282: 280 5.6 Managerial Implications We
Page 283 and 284: 282 • Convening bilateral and/or
Page 285 and 286: 284 5.7 Limitations of This Study F
Page 287 and 288: 286 This brings us to the next limi
Page 289 and 290: 288 crisis they have suggested how
Page 291 and 292: 290 AICPA auditing standards board
Page 293 and 294: 292 References Abarbanell, J., & Le
Page 295 and 296: 294 Berens, G., van Riel, C., & van
Page 297 and 298: 296 Coffee Jr., J. 2001. The Acquie
Page 299: 298 Efendi, J., Srivastava, A., & S
Page 303 and 304: 302 Huron Consulting Group. 2005. 2
Page 305 and 306: 304 Loebbecke, J., & Willingham Jr.
Page 307 and 308: 306 Prentice, R. 2007a. Ethical Dec
Page 309 and 310: 308 Sun, P., & Zhang, Y. 2006. Is T
Page 311 and 312: 310 Appendices Appendix 1.1 Materia
Page 313 and 314: 312 Appendix 1.2 The Subprime Mortg
Page 315 and 316: 314 Appendix 2.1 Timelines Freddie
Page 317 and 318: 316 Appendix 2.2 Coding Scheme OPEN
Page 319 and 320: 318 codiNg scores by positive aNd N
Page 321 and 322: 320 Appendix 3.1 Analysts Survey Ap
Page 323 and 324: 322 Appendix 3.1 Analysts Survey
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350 Appendix 3.2 Analysts’ Survey
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352 Construct Item number Item name
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Samenvatting ‘Financial Statement
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gebaseerd op historische dataverzam
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Earnings Management Pressures & Job
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Op basis van literatuur studie over
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Erasmus Research Institute of Manag
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Damen, F.J.A., Taking the Lead: The
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Heuvel, W. van den, The Economic Lo
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Le-Duc, T., Design and Control of E
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Noeverman, J., Management Control S
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Six, F.E., Trust and Trouble: Build
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Watkins Fassler, K., Macroeconomic
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