Week 7 Seminar Jeopardy

Week 6 Review

100

These 3 deception techniques are the most common ones that firms use for "Greenwashing"

Confusion, Framing and Posturing

200

Stakeholders will do this when performing engagement on a transactional basis

Stakeholders work closely with companies to improve their direct operational capacity with respect to a specific aspect of CSR.

300

These are the two major limitations of the research mentioned in the article authored by Nazari et al.

•Sample limited to companies listed on the S&P 500.

•North American companies lag behind their European counterparts in CSR disclosure.

Chapter 8

100

Lenders and shareholders demand these requirements from accounting information

Reliability and conditional conservatism

200

Under efficient contracting theory, this is the best solution when handling contract rigidity

Provide flexibility for managers to choose accounting policies permitted by GAAP while requiring full disclosure on effect of changes 

300

This is the action that managers take  to increase share prices before exercising their stock options and then selling before share prices drop

Pump and dump

Zeff (1978)

100

This was the primary accounting standards setter body of the 1970s

Financial Accounting Standards Board (FASB)

200

This term refers to the impact of accounting reports on the decision making behaviour of business, government, unions, investors and creditors

Economic Consequences

300

In the 1970s there were three major reasons that influenced FASB’s decision to incorporate economic and social consequences into its standard setting process. What are those reasons?

1. American society held its institutions responsible for the social, environmental, and economic  consequences of the actions 

2. Companies made business decisions influenced by how the accounting earnings would be affected 

3. Previous accounting policies recommended by FASB had an extremely high impact on volatility or level of earnings (ties into society holding institutions responsible for consequences of their actions 

Watts and Zimmerman (1990)

100

Positive accounting literature shows management act in this way

Opportunistically 

200

Positive accounting theory uses these three types of methodology

Economics
Science
Finance

300

These three hypothesis exemplify the advancements made in positive accounting literature and show management act opportunistically 

Bonus Plan
Debt/Equity
Political Cost