Publications

August 2005
Background Note

Note on International Tax Regimes

By: Mihir A. Desai, Mark Veblen and Kathleen Luchs

Provides a framework for understanding different types of international tax regimes. Examines how alternative tax regimes tax the foreign income of their citizens (including corporate citizens); how tax regimes define foreign and domestic income; and how foreign tax... View Details

Keywords: Motivation and Incentives; Earnings Management; Nationality; Framework; Taxation; Profit; Globalization; Credit; United States

November 2010 (Revised January 2011)
Supplement

DoubleClick, Inc.: Accumulated Other Comprehensive Income

By: David F. Hawkins

FASB and IASB proposal to require comprehensive income statements. View Details

Keywords: Business Earnings; Financial Statements; Governing Rules, Regulations, and Reforms

October 2011 (Revised January 2012)
Case

LinkedIn Corporation

By: Francois Brochet and James Weber

The case is set at the end of the first public trading day of LinkedIn, an online professional network company. It provides information on the company's business model, financial statements, competitive landscape, and IPO terms, to help the reader critically assess the... View Details

Keywords: Initial Public Offering; Growth and Development; Earnings Management; Risk Management; Valuation; SWOT Analysis; Emerging Markets; Business Model; Information Technology; Competitive Strategy; Web Services Industry

May 2000
Case

To Trim or Not to Trim: That Is the Question

By: Srikant M. Datar

Should Novartis drop 20% of its global pharmaceutical product brands that account for only 3% of its pharmaceutical revenues? View Details

Keywords: Business Earnings; Cost vs Benefits; Business Strategy; Investment Return; Problems and Challenges; Pharmaceutical Industry

September 1996 (Revised September 2004)
Case

Monterrey Manufacturing Company

By: William J. Bruns Jr.

A small manufacturing company plans and budgets sales and expenses to ensure that its strategy is feasible. It must trace costs of manufacturing through work-in-process to finished goods and cost of goods sold, and project cash flows and income. View Details

Keywords: Cost Accounting; Business Earnings; Cash Flow; Sales; Budgets and Budgeting; Manufacturing Industry

February 2009
Article

Optimal Reserve Management and Sovereign Debt

By: Laura Alfaro and Fabio Kanczuk

Most models currently used to determine optimal foreign reserve holdings take the level of international debt as given. However, given the sovereign's willingness-to-pay incentive problems, reserve accumulation may reduce sustainable debt levels. In addition, assuming... View Details

Keywords: Borrowing and Debt; Motivation and Incentives; Decisions; Emerging Markets; Balance and Stability; Earnings Management; Policy; Interest Rates; International Finance; Cost

Read Now

November 1999
Case

Seminis Inc.

By: Ray A. Goldberg, Jonathan West, Carin-Isabel Knoop and David Benedict Pearcy

Seminis became the world leader in vegetable seeds through a series of acquisitions. This case describes the Seminis strategy toward capturing value, biotechnology, and international operations. View Details

Keywords: Business Earnings; Acquisition; Profit; Global Strategy; Corporate Strategy; Valuation; Value Creation; Biotechnology Industry

December 1992 (Revised March 1997)
Case

Peoria Engine Plant (A)

By: Robert S. Kaplan and Amy P. Hutton

Describes the cost control system used at an automobile engine plant for labor and overhead costs. The finance staff prepares daily, weekly, and monthly variance reports against budgets. Department supervisors, finance staff, and the plant manager discuss the use and... View Details

Keywords: Cost Management; Cost Accounting; Budgets and Budgeting; Earnings Management; Reports; Financial Reporting; Management Analysis, Tools, and Techniques; Performance Improvement; Performance Productivity; Factories, Labs, and Plants; Auto Industry

January 1999 (Revised June 2006)
Case

Advanced Technologies, Inc.

By: Thomas R. Piper

The CEO of a semiconductor equipment manufacturer is assessing the financial forecasts and financing plan prepared by the chief financial officer. Continued rapid growth will create substantial financing pressures, especially if profitability fails to recover and/or if... View Details

Keywords: Forecasting and Prediction; Earnings Management; Financial Condition; Financial Reporting; Risk and Uncertainty; Economic Slowdown and Stagnation; Outcome or Result; Growth and Development; Crisis Management; Profit; Financial Strategy; Semiconductor Industry; Manufacturing Industry

2010
Working Paper

Lawful but Corrupt: Gaming and the Problem of Institutional Corruption in the Private Sector

By: Malcolm S. Salter

This paper describes how the gaming of society's rules by corporations contributes to the problem of institutional corruption in the world of business. "Gaming" in its various forms involves the use of technically legal means to subvert the intent of society's rules in... View Details

Keywords: Crime and Corruption; Civil Society or Community; Competitive Advantage; Earnings Management; Trust; Law; Performance; Investment Funds; Private Sector; Behavior; Relationships; Goals and Objectives

Read Now

April 2005 (Revised October 2006)
Case

David Berman

By: Ananth Raman, Vishal Gaur and Saravanan Kesavan

Examines the decision of a hedge fund manager who is considering investing in a retail stock. The protagonist is concerned about the retailer's inventory level. Explores the relationship between the retailer's inventory and future earnings--and, hence, the relationship... View Details

Keywords: Business Earnings; Stocks; Price; Supply Chain Management; Investment

February 2001 (Revised March 2003)
Teaching Note

Circuits, Inc. TN

By: David F. Hawkins

Teaching Note for (9-100-013). View Details

Keywords: Stock Shares; Business Earnings; Standards

September 2011 (Revised February 2013)
Case

Sino-Forest (A)

By: David F. Hawkins and David Lane

Chinese company listed on the Toronto Stock Exchange is accused of fraud by a hedge fund. View Details

Keywords: Business Earnings; Crime and Corruption; Financial Markets; Investment Funds; Management Analysis, Tools, and Techniques; China

June 1977 (Revised September 1992)
Case

Sorenson Research Co. (Abridged)

By: Steven C. Wheelwright

Presents the issues facing a high volume, high margin (but lightweight) medical products business. The company is trying to improve its inventory control to reduce inventory investment and improve service. The present multi-site inventory system is described and major... View Details

Keywords: Business Earnings; Investment; Volume; Service Delivery; Supply Chain; Performance Improvement; Medical Devices and Supplies Industry

July 1989 (Revised April 2001)
Case

Kanthal (A)

By: Robert S. Kaplan

Multinational company needs an improved cost system to determine the profitability of individual customer orders. Its strategy is to have significant sales and profitability growth without adding additional administrative and support people. The new cost system... View Details

Keywords: Cost Accounting; Earnings Management; Cost Management; Financial Management; Multinational Firms and Management; Business or Company Management; Customer Relationship Management; Sales; Business Strategy; Profit; Electronics Industry

May 1993
Case

Kaufmann Manufacturing Company (A)

By: Julie H. Hertenstein and William J. Bruns Jr.

A management team at Kaufmann is studying the latest year's operations and sales, which seem to have led to very confusing financial results. Sales exceeded forecast and production for the first six months, however Kaufmann reported a loss. Yet, when sales were below... View Details

Keywords: Budgets and Budgeting; Earnings Management; Cost Accounting; Financial Reporting; Cost vs Benefits; Capital Budgeting; Cost Management; Profit; Outcome or Result

Article

Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items

By: Edward J. Riedl and Suraj Srinivasan

This paper investigates whether managers' presentation of special items within the financial statements reflects economic performance or opportunism. Specifically, we assess special items presented as a separate line item on the income statement (income statement... View Details

Keywords: Managerial Roles; Financial Statements; Economics; Performance; Research; Opportunities; Business Earnings; Motivation and Incentives

SSRN

December 1999 (Revised April 2002)
Case

International Business Machines Corporation (A)

By: David F. Hawkins

Perform financial ratio analysis to identify changes in IBM's business mix and profitability. Teaching purpose: Ratio analysis. View Details

Keywords: Information Infrastructure; Capital Structure; Performance Efficiency; Business Earnings; Business Model; Private Sector; Commercialization; Computer Industry; Accounting Industry

March 1990 (Revised June 1993)
Case

Analog Devices, Inc.: The Half-Life System

By: Robert S. Kaplan

The company has committed to major improvements in quality, cost, and on-time delivery performance. Despite strong senior management support, however, the actual rate of improvement was disappointing until a new measurement philosophy was introduced. The new approach... View Details

Keywords: Quality; Performance Improvement; Earnings Management; Financial Reporting; Organizational Change and Adaptation; Performance Productivity; Business or Company Management; Cost Management; Measurement and Metrics; Management Teams; Semiconductor Industry