Essays in Accounting Theory in Honour of Joel S. Demski

Rick Antle is the William S. Beinecke Professor of Accounting at the Yale School of Management, where he was the Senior Associate Dean from 2000 to 2005. Frøystein Gjesdal is a professor of Managerial Economics at Norwegian School of Economics and Business Administration (NHH) and is currently Head of the Department of Accounting, Auditing and Law. Pierre Jinghong Liang is an Associate Professor of Accounting at Tepper School of Business, Carnegie Mellon University. Advancing understanding of accounting theory, this rigorous scholarly work focuses on the analysis of corporate accounting reports as a source of information used in corporate decision-making and in pricing securities by the capital market. Wide-ranging and important chapters cover such topical issues as: managerial compensation, corporate insider trading, real options, fair value accounting standards, procurement costing, and quantum information. The chapters illustrate the variety of both modeling and empirical methods for addressing issues involving incentives and information. The authors' unparalleled quality makes this book useful for both established and aspiring accounting scholars. Front Matter....Pages i-xix Joel S. Demski: A Leader in Accounting Scholarship....Pages 1-32 Front Matter....Pages 33-33 Fair Value, Accounting Aggregation and Multiple Sources of Information....Pages 35-51 Equilibrium Voluntary Disclosures when Firms Possess Random Multi-Dimensional Private Information....Pages 53-72 Synergy, Quantum Probabilities, and Cost of Control....Pages 73-96 Moral Hazard with Hidden Information....Pages 97-122 On The Subtleties of the Principal-Agent Model....Pages 123-142 Front Matter....Pages 143-143 Incentive Problems and Investment Timing Options....Pages 145-168 Aligning Incentives by Capping Bonuses....Pages 169-182 The Controllability Principle in Responsibility Accounting: Another Look....Pages 183-198 Public Disclosure of Trades by Corporate Insiders in Financial Markets and Tacit Coordination....Pages 199-223 Front Matter....Pages 225-225 The Structure of Performance-Vested Stock Option Grants....Pages 227-249 The Lcamr Missile....Pages 251-281 Front Matter....Pages 283-283 A Note on the Information Perspective and the Conceptual Framework....Pages 285-293 Economizing Principle in Accounting Research....Pages 295-310 Back Matter....Pages 311-327 Essays on Accounting Theory in Honour of Joel S. Demski is a collection of previously unpublished essays on accounting theory. The contributors are students, collaborators, colleagues and friends of Professor Joel S. Demski. Most of the contributors share Professor Demski's view of accounting as the production and consumption of a very special and powerful economic good called information. Like Professor Demski, they also prefer an economic analytic approach to accounting theory. However, some contributors have chosen other perspectives on the field of accounting. The book also contains an extensive review of Professor Demski's own contributions, to the theory of accounting over the past four decades, written by Jerry Feltham, professor emeritus at the University of British Columbia. The integration of Accounting and the Economics of information worked out by Joel Demski and those he inspired has revolutionized accounting thought. The integration of accounting and the economics of information developed by Joel S. Demski and those he inspired has revolutionized accounting thought. This volume collects papers on accounting theory in honor of Professor Demski. The book also contains an extensive review of Professor Demskis own contributions to the theory of accounting over the past four decades.