Why do companies manipulate their financial reports? A new study shows that the financial incentives of rank-and-file employees play a significant role in shaping corporate financial reporting. Researchers found that higher pay and fixed compensation for junior accountants can improve accounting quality, while cash bonuses tied to corporate earnings can lead to aggressive revenue recognition and misreporting. Learn more about the bean counters' dilemma and its impact on financial reporting in this thought-provoking study by the Stanford Graduate School of Business and the University of Washington's Foster School of Business.

The global financial crisis of 2008 led to economic turmoil and widespread job loss, but the role of OTC (over-the-counter) derivatives in the crash is not well understood. These complex financial instruments were designed to reduce risk, but they amplified it, resulting in massive losses and a bailout that cost taxpayers trillions of dollars. OTC derivatives are contracts that allow parties to speculate on the future value of assets such as stocks, bonds, or commodities. They are privately negotiated and not traded on public exchanges, which makes them less transparent and harder to regulate. Banks and other financial institutions created increasingly complex and risky derivatives, such as credit default swaps (CDS) that allowed investors to bet on the likelihood of default on mortgages and other debt in the years leading up to the crisis. When the housing bubble burst and homeowners began defaulting on their mortgages, the value of CDS contracts plummeted, causing massive losses for those who held them. This triggered a chain reaction of failures and bailouts as banks tried to shore up their balance sheets and avoid bankruptcy. The government bailouts of banks and other financial institutions during the crisis are estimated to have cost $12.8 trillion globally, including direct and indirect costs such as lost tax revenue and economic output. Leading academics have been critical of the lack of transparency and regulation in the OTC derivatives market. Senator Elizabeth Warren, a law professor and former chair of the Congressional Oversight Panel for TARP, has argued that the complexity and opacity of these instruments makes it difficult to assess risk and protect consumers. Nobel laureate economist Joseph Stiglitz has also warned of the dangers of unregulated financial innovation, calling for stronger oversight and better risk management. Understanding the role of OTC derivatives in the global financial crisis is a lesson in the need for transparency, accountability, and responsible risk management in the world of finance. By exploring this and related topics in more depth, students can gain valuable insights into the workings of the economy and the forces that shape our world.

The topics of securitisation and the global financial crisis are not just about numbers, facts, and statistics, but also about human failure, greed, and risk. It's a tale of how a small spark in the world of finance led to a massive explosion that shook the global economy to its core. Let's start with the basics. Securitisation is the process of pooling together various financial assets and then selling securities backed by those assets to investors. The idea behind securitisation was to spread the risk of default among many different investors and make the financial system more stable. However, the reality was far from what was promised. The global financial crisis of 2008 was triggered by the collapse of the housing market, which had been the backbone of the securitisation industry. The crisis was caused by the failure of the rating agencies, who were supposed to assess the risk associated with securities, but instead, gave high ratings to securities backed by risky loans. Ever heard of the term NINJA loans? No Income, No Job, No Assets - these were the types of loans that were being securitised and sold to investors. The financial industry was full of these loans, and the ratings agencies were happy to give high ratings to these securities, leading to the financial crisis. Leading academics such as Raghuram Rajan and Joseph Stiglitz have made significant contributions to the field of securitisation and the global financial crisis. Rajan highlighted the dangers of the financial system's reliance on securitisation, while Stiglitz criticised the rating agencies for their role in the crisis. We hope this write-up has inspired you to dive deeper into the world of securitisation and the global financial crisis. It's a fascinating topic with real-life examples and lessons to be learned. So, grab a book, turn on a documentary, or start a project, and let your imagination take you on a journey to a world of risk, failure, and exploration.

Are you looking for a career that is challenging, dynamic, and rewarding? Do you want to make a positive impact on people's lives and help them save money? If so, then a career in tax planning might be just what you're looking for! Tax planning is a field that involves helping individuals and businesses navigate the complex world of taxes. As a tax planner, you will work with clients to minimize their tax liability while ensuring compliance with all applicable laws and regulations. This can involve everything from preparing tax returns to developing long-term tax strategies. One of the most appealing aspects of a career in tax planning is the opportunity to work with a wide variety of clients. You might work with individuals, small businesses, or large corporations, each with their unique tax needs and challenges. And because tax laws are constantly changing, you will always be learning and adapting to new situations. Another exciting aspect of tax planning is the potential to specialize in a particular area. For example, you might focus on international tax planning, estate planning, or tax law for nonprofits. There are also many related fields, such as accounting or financial planning, that can complement a career in tax planning. To become a tax planner, you typically need a bachelor's degree in accounting, finance, or a related field. Many universities offer specialized programs in tax planning, such as the Taxation and Accounting program at the University of Southern California or the Taxation program at Georgetown University. You may also need to obtain additional certifications, such as the Certified Public Accountant (CPA) or Enrolled Agent (EA) designation. In addition to education and training, there are certain personal attributes that can be helpful in a career in tax planning. These include strong analytical skills, attention to detail, and excellent communication skills. You will need to be able to explain complex tax concepts to clients in a way that is easy to understand. Job prospects for tax planners are generally good, as taxes are a fact of life for individuals and businesses alike. Some of the top employers in the field include accounting firms like Deloitte, Ernst & Young, and PwC, as well as financial institutions like JPMorgan Chase and Goldman Sachs. And because tax laws are constantly changing, there will always be a need for skilled tax planners. So if you're looking for a challenging and rewarding career that can make a real difference in people's lives, consider a career in tax planning. With the right education, training, and personal attributes, you can help clients navigate the complex world of taxes and achieve their financial goals.

The Business Blockchain by William Mougayar is a must-read for anyone interested in understanding the potential of blockchain technology. This book goes beyond the basics of what a blockchain is and explores the polymorphic characteristics of this revolutionary technology, which will enable frictionless value exchange and redefine relationships, power, and governance. Mougayar, a blockchain industry insider, draws on his extensive experience to describe a future influenced by blockchain technology as the catalyst for change. The Business Blockchain is an invitation to explore the many facets of blockchain technology and learn how to think about its potential. Recommended for entrepreneurs, investors, technologists, and business-minded individuals, The Business Blockchain provides a comprehensive understanding of the potential of blockchain technology. This book is relevant to a wide range of fields of studies, including computer science, economics, finance, and law. It is also useful for professionals in various industries, such as banking, insurance, healthcare, and supply chain management, who are interested in exploring the transformative potential of blockchain technology. Finally, this book is relevant to anyone interested in understanding the future of trust, value exchange, and governance in a decentralized world.

New research by Takuo Sugaya (Stanford Graduate School of Business) and Mitsuru Igami (Yale Department of Economics) reveals the conditions needed for illegal cartels to survive and the factors that lead to their failure. Using game theory to analyze one of the biggest cartel cases in modern history, the researchers discovered that sustained collusion requires mutually beneficial incentives for all companies involved. Findings have implications for policymakers and regulators in their approval of mergers and investment in innovation.

Financial regulators have finally taken an interest in cryptocurrencies due to political pressure, despite law enforcement closely monitoring transactions for years. While crypto may not pose significant micro or macro concerns, regulators are compelled to act. However, their actions may backfire, warns Dr Jon Danielsson.

Are you a natural problem solver with a keen eye for detail? Do you enjoy working in a fast-paced environment where every day is different? If so, a career in Risk Management might be the perfect fit for you! Risk Management is a field that involves identifying, assessing, and mitigating potential risks that could impact an organization's operations, finances, or reputation. This can include everything from natural disasters and cyber attacks to financial fraud and legal liabilities. One of the most appealing aspects of a career in Risk Management is the diversity of the role. Depending on the industry you work in, you could be responsible for anything from developing emergency response plans to conducting security audits and investigating incidents. For example, a Risk Manager in the healthcare industry might focus on ensuring patient safety and compliance with regulatory requirements, while a Risk Manager in the financial sector might be responsible for managing market and credit risk. To succeed in this field, you'll need a combination of analytical skills, communication skills, and business acumen. A degree in business, finance, or a related field is typically required, with many employers preferring candidates with a Master's degree or professional certification. There are many potential areas of specialization within Risk Management, including Enterprise Risk Management, Operational Risk Management, and Cybersecurity Risk Management. In addition, there are many related fields that can lead to a career in Risk Management, such as Insurance, Accounting, and Law. Some popular undergraduate programs and majors for those interested in Risk Management include Business Administration, Finance, Accounting, and Economics. Many universities also offer specialized Risk Management programs that provide in-depth training in the field. When it comes to job prospects, the outlook for Risk Management professionals is strong. According to the Bureau of Labor Statistics, employment in this field is expected to grow faster than average over the next decade. There are many potential employers in both the public and private sectors, including government agencies, financial institutions, healthcare organizations, and consulting firms. Some notable and attractive potential employers in the field of Risk Management include JPMorgan Chase, Deloitte, Aon, and Marsh. These companies offer competitive salaries, comprehensive benefits packages, and opportunities for career advancement. In conclusion, if you're looking for a challenging and rewarding career that allows you to make a real difference in the world, consider a career in Risk Management. With its diverse range of responsibilities, attractive job prospects, and potential for growth and advancement, this field is sure to offer something for everyone.

Auditing might not sound like the most exciting career, but it's actually a crucial role in ensuring that businesses and organizations are financially healthy and following all the rules. As an auditor, you'll be responsible for reviewing financial records, assessing risk and making recommendations to improve processes and procedures. One of the most interesting aspects of auditing is the variety of industries you can work in. Auditors are needed in everything from healthcare to finance, and can specialize in areas like IT auditing or forensic accounting. This means that as an auditor, you'll get to work with a diverse range of clients and industries, keeping things fresh and challenging. Typical duties can include reviewing financial statements, testing internal controls, and identifying areas where the organization can improve its financial practices. You'll need strong analytical skills, attention to detail, and the ability to communicate complex financial information in a clear and concise way. To become an auditor, you'll typically need a bachelor's degree in accounting or a related field. Popular majors include accounting, finance, and business administration. Many auditors also go on to earn certifications like the Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) designations. In terms of personal attributes, successful auditors tend to be detail-oriented, analytical, and able to work independently. You'll also need strong communication skills, as you'll be working with clients and colleagues from a variety of backgrounds. Job prospects for auditors are strong, with a projected growth rate of 10% over the next decade. Some notable employers in the field include the "Big Four" accounting firms (Deloitte, PwC, KPMG, and EY), as well as government agencies like the Internal Revenue Service (IRS) and the Securities and Exchange Commission (SEC). So if you're looking for a career that's challenging, rewarding, and in-demand, auditing might be the perfect fit for you!

Are you interested in a field that combines finance, law, and strategy? Look no further than tax planning! Tax planning is a fascinating field that involves helping individuals and businesses navigate the complex world of taxation. Did you know that tax planning can save individuals and businesses thousands, even millions of dollars? For example, a tax planner might help a small business owner structure their company in a way that minimizes their tax liability, or advise a wealthy individual on how to make charitable donations in a tax-efficient way. In the world of academia, tax planning is a hot topic. Researchers are constantly exploring new ways to minimize tax liability while staying within the bounds of the law. Some of the most well-known figures in the field include Edward Kleinbard, who has written extensively on the taxation of multinational corporations, and Lily Batchelder, who has proposed a wealth tax to address income inequality. At the undergraduate level, students can expect to take courses in tax law, accounting, and financial planning. Some universities also offer specialized courses in areas like estate planning or international taxation. Students who want to pursue further specialization can go on to study tax law or become certified public accountants. So what kind of careers can you expect to find in tax planning? The possibilities are endless! Tax planners can work for accounting firms, law firms, or consulting firms. They can also work for government agencies or non-profit organizations. Some notable employers in the field include PwC, Deloitte, and the Internal Revenue Service. To succeed in tax planning, you'll need to have a strong foundation in finance and accounting, as well as a keen eye for detail. You should also be comfortable working with numbers and have excellent communication skills. If you're interested in helping individuals and businesses save money while staying on the right side of the law, tax planning might be the perfect field for you!

If you're a student who is intrigued by the complex and ever-changing world of business, corporate law could be the perfect career path for you. Corporate lawyers play a critical role in advising companies on legal matters and helping them navigate the intricate web of laws and regulations that govern modern commerce. Here's a closer look at what a career in corporate law entails and why it might be a great fit for you. Corporate law is a fascinating field that blends business and law, with a focus on the legal issues that arise in the context of corporate activities. Corporate lawyers help companies with a wide range of legal matters, such as structuring and negotiating business transactions, complying with regulatory requirements, and resolving disputes. Some corporate lawyers work in-house for a single company, while others work for law firms that provide legal services to multiple clients. One of the most appealing aspects of a career in corporate law is the opportunity to work on high-stakes deals and transactions that can have a significant impact on the global economy. For example, a corporate lawyer might work on a merger between two multinational companies, help a startup navigate the legal hurdles of an initial public offering (IPO), or advise a Fortune 500 company on a major joint venture. The work can be challenging, but also incredibly rewarding. In terms of day-to-day responsibilities, corporate lawyers often research and analyze legal issues, draft contracts and other legal documents, and advise clients on the legal implications of various business decisions. Some corporate lawyers specialize in particular areas of law, such as securities law, tax law, or intellectual property law. Others work in related fields such as mergers and acquisitions, private equity, or investment banking. To become a corporate lawyer, you'll typically need to earn a law degree (J.D.) and pass the bar exam in the state where you plan to practice. Some popular undergraduate majors for aspiring corporate lawyers include business, economics, and political science. Many law schools offer courses and clinics focused specifically on corporate law, and some also offer joint degree programs that combine law and business. In terms of personal attributes, successful corporate lawyers tend to be analytical, detail-oriented, and able to think strategically. They should also have excellent communication skills, as they will be working closely with clients, other lawyers, and business executives. The job prospects for corporate lawyers are generally strong, particularly at top law firms and in-house legal departments at large companies. Many of the world's leading law firms have dedicated corporate practices, and some of the most well-known names in the business world, such as Goldman Sachs, Microsoft, and Procter & Gamble, have large legal departments that employ corporate lawyers.

Have you ever wondered why some CEOs earn hundreds of times more than their employees? In recent years, the topic of excessive CEO compensation has gained widespread attention and sparked intense debate. While some argue that CEOs deserve high pay for their leadership and contributions to their companies' success, others believe that such compensation is unjustified and contributes to economic inequality. In this write-up, we will explore the justifications for and advances in the area of excessive CEO compensation, and discuss the impact it has on the economy and society at large. One common argument in favor of excessive CEO compensation is that it serves as an incentive for CEOs to work harder and make better decisions. Supporters of this view believe that the promise of a large salary and bonuses motivates CEOs to maximize their companies' profits and shareholder value. However, critics argue that this argument is flawed, as there is little evidence to suggest that higher pay leads to better performance. In fact, some studies have found that excessive CEO compensation can lead to short-term thinking, risk-taking, and unethical behavior. In recent years, there have been several advances in the area of excessive CEO compensation. One significant development is the increased attention and scrutiny placed on CEO pay by shareholders, activists, and the media. This has led to a greater focus on the link between CEO pay and company performance, as well as the need for greater transparency and accountability in executive compensation. Another development is the rise of shareholder activism, in which investors use their power to influence companies' decisions on CEO pay and other issues. To fully understand the topic of excessive CEO compensation, it is important to be familiar with certain academic terms and concepts. One such term is "pay ratio," which refers to the ratio of CEO pay to median employee pay. Another important concept is "stock options," which are a form of executive compensation that gives CEOs the right to buy company stock at a set price. Additionally, "agency theory" is a key concept that is used to explain and resolve issues in the relationship between CEOs and their companies' shareholders. Several leading academics have made significant contributions to the study of excessive CEO compensation. One of these scholars is Lucian Bebchuk, a professor at Harvard Law School who has written extensively on the topic. Bebchuk argues that excessive CEO pay can lead to a misalignment of interests between executives and shareholders, and calls for reforms to address this issue. Another important academic in this area is Steven N. Kaplan, a professor at the University of Chicago Booth School of Business. Kaplan's research focuses on the link between CEO pay and company performance, and he has found that the relationship between the two is more complex than previously thought. Excessive CEO compensation is a complex and controversial topic that has significant implications for the economy and society.

Cryptocurrency ventures are filing for bankruptcy, raising concerns about regulatory protection for retail consumers. Thomas Kalafatis and Richard Nesbitt argue that while cryptographically enhanced commerce is here to stay, regulators must become more aggressive with both coins and programming code to keep externalities under control. The lack of protection for disadvantaged consumers imposes a disproportionate cost of failure. Despite clear regulations, fraud still occurs, and more uniform and less arbitrageable regulation is needed to meet the public's demand for the benefit of cryptographically enhanced commerce.

Learning about Ponzi schemes can help you become a more informed investor and a smarter consumer. Ponzi schemes are scams that offer high returns on investments but actually use new investors’ money to pay earlier investors. Bernie Madoff's Ponzi scheme, the largest in history, conned tens of billions of dollars from investors over multiple decades. Understanding how Ponzi schemes work can help you avoid falling victim to them and make better choices with your money. Learning about Ponzi schemes can also help you develop critical thinking skills as you evaluate investment opportunities and assess their legitimacy. By delving into this topic, you can become more financially savvy and protect yourself from fraudulent schemes.

This text is the ultimate guide to the intersection of law and economics, covering everything from common law to the Constitution. Written by a highly distinguished author, it's accessible to those without prior knowledge of economics or mathematics and includes end-of-chapter sections to reinforce learning. This edition is updated with new information, including insights on Enron and other corporate scandals, the legal regulation of national security and foreign affairs, and expanded coverage of foreign law and intellectual property. This guide provides excellent coverage of topics ranging from common law to the Constitution ensures its relevance to those studying law, while also addressing economic issues for those studying economics. It also delves into emerging fields such as behavioral finance and internet law. The updated information in this edition is particularly noteworthy, with expanded coverage of foreign law and intellectual property. Overall, this guide is an excellent tool for those seeking to deepen their understanding of the interplay between law and economics, and to stay up-to-date with the latest developments in the field.

Corporate Law is the dynamic and fascinating field of law that deals with the legal aspects of businesses and corporations. It is a field that is constantly evolving and adapting to the ever-changing business world, making it an exciting and challenging area of study. One of the most interesting aspects of Corporate Law is its relevance to real-life situations. For example, when a company merges with another, Corporate Law governs the legal framework of the transaction. This can involve complex legal negotiations, drafting of agreements, and regulatory compliance. Corporate Law is also responsible for the legal aspects of corporate governance, including the roles and responsibilities of directors and officers, and the rights of shareholders. Innovative research and academic discourse in Corporate Law is constantly pushing the boundaries of what is possible. For instance, there is ongoing research into the use of blockchain technology to streamline corporate transactions and improve transparency. There are also debates around the role of corporations in society, and the extent to which they should prioritize social responsibility. At undergraduate level, students can expect to study a range of modules including Contract Law, Company Law, and Securities Regulation. Further specializations could include Mergers and Acquisitions or Intellectual Property Law. Real-life examples of Corporate Law in action include the acquisition of Instagram by Facebook, or the patent infringement litigation between Apple and Samsung. A degree in Corporate Law can open up a wide range of career opportunities, including roles in law firms, corporations, government agencies, and non-profit organizations. Notable employers include top law firms such as Skadden, Arps, Slate, Meagher & Flom, and global corporations such as Google and Goldman Sachs. To succeed in Corporate Law, students should possess strong analytical skills, attention to detail, and excellent communication skills. An interest in business and economics is also helpful, as is the ability to work well under pressure. Overall, a degree in Corporate Law is an exciting and rewarding path for students interested in the intersection of law and business.

Andrew Ross Sorkin's "Too Big to Fail" is a gripping account of the financial crisis that shook the world economy to its core. With unprecedented access to the key players involved, Sorkin takes us behind the scenes of secret meetings in South Korea, the corridors of Washington, and the corner office at Lehman Brothers. The book is a real-life thriller, revealing never-disclosed details and the decisions made on Wall Street that sowed the seeds of the debacle. This is a must-read for anyone interested in the world of finance, politics, and the fate of the global economy. Recommended for finance enthusiasts, political science students, and anyone interested in understanding the causes and consequences of the 2008 financial crisis. This book provides a moment-by-moment account of how the crisis developed into a global tsunami, with unprecedented access to the key players involved. It sheds light on the decisions made on Wall Street that led to the collapse of Lehman Brothers and the subsequent bailout of the world's biggest banks. Anyone looking to gain insights into the workings of the finance industry and the role of politics in shaping the global economy will find this book a fascinating read.

Do you have a passion for both law and business? Are you interested in ensuring that organizations and companies operate in accordance with all applicable laws and regulations? If so, a career in legal compliance might be the perfect fit for you. Legal compliance is a field that requires professionals to ensure that companies are following all laws and regulations that apply to their industry. Compliance professionals work in a variety of industries, including finance, healthcare, technology, and more. They work to prevent legal violations and ensure that companies are operating ethically and responsibly. One of the most interesting aspects of legal compliance is the opportunity to work with a wide variety of stakeholders. Compliance professionals work with a range of individuals, including executives, managers, employees, and regulatory agencies. They collaborate with these stakeholders to create and implement policies and procedures that ensure compliance. Real-life examples of legal compliance can be found in many industries. For example, a healthcare compliance officer might be responsible for ensuring that a hospital is following all relevant medical regulations. In the finance industry, a compliance officer might ensure that a bank is following anti-money laundering laws. In the tech industry, a compliance officer might ensure that a software company is protecting user data in accordance with applicable privacy laws. Typical duties in legal compliance include conducting audits and risk assessments, creating and implementing policies and procedures, training employees, and managing regulatory relationships. There are many potential areas of specialization within legal compliance, including healthcare compliance, financial compliance, and data privacy compliance. Other related fields include legal risk management, regulatory affairs, and ethics and compliance. To pursue a career in legal compliance, most professionals hold a bachelor's degree in a related field such as business, law, or accounting. Some popular undergraduate programs and majors for legal compliance include accounting, business administration, and criminal justice. Advanced degrees, such as a master's in legal studies, may also be beneficial. Helpful personal attributes for legal compliance professionals include attention to detail, critical thinking, and excellent communication skills. A passion for helping organizations operate ethically and responsibly is also important. The job prospects for legal compliance professionals are strong, with a projected growth rate of 5% over the next 10 years. Notable employers in the field include large corporations such as Amazon, Microsoft, and JPMorgan Chase, as well as government agencies such as the Federal Reserve and the Securities and Exchange Commission.

Do you have a passion for law and a knack for business? Are you interested in helping corporations navigate the legal landscape and protect their interests? Then a career in Corporate Counsel might be the perfect fit for you! As a Corporate Counsel, you will be responsible for providing legal guidance and advice to businesses on a variety of matters, including contracts, compliance, intellectual property, and more. You will work closely with executives and other stakeholders to ensure that the company is operating within the bounds of the law and that its interests are protected. One of the most appealing aspects of this career is the opportunity to work with a wide range of clients and industries. From tech startups to multinational corporations, every business needs legal guidance, and as a Corporate Counsel, you will have the chance to work with some of the biggest and most innovative companies in the world. Some of the typical duties of a Corporate Counsel might include negotiating contracts, drafting legal documents, conducting research on legal issues, and providing advice on regulatory compliance. There are also many potential areas of specialisation within the field, such as employment law, tax law, and intellectual property law. To become a Corporate Counsel, you will typically need a law degree and a license to practice law in your jurisdiction. Many Corporate Counsel also have undergraduate degrees in business or related fields, such as finance or accounting. Popular undergraduate programs and majors for those interested in this career include Business Administration, Economics, and Political Science. In addition to the required education and training, there are certain personal attributes that can be helpful in this career. Strong communication skills, attention to detail, and a strategic mindset are all important qualities for a successful Corporate Counsel. Job prospects for Corporate Counsel are generally quite strong, with many opportunities available in both the public and private sectors. Some notable potential employers include Amazon, Google, and Microsoft, as well as government agencies such as the Securities and Exchange Commission and the Department of Justice. So if you're looking for a challenging and rewarding career that combines your passion for law and business, consider a career in Corporate Counsel!

Social media has changed the dynamics of bank runs, as seen in the case of Silicon Valley Bank where depositors fled at an extraordinary rate of $40bn in one day due to social media chatter. This raises concerns about the fragility of the banking system built on faith and trust. The speed at which runs can take place and social media can be translated into loss is a new challenge that regulators need to address. The source passage explores the impact of social media on bank runs and the need for regulatory responses.