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This study aims to examine the use of real activities manipulation by firms implicated in the stock option backdating scandal.

The real activity manipulation measures are as follows: abnormal R&D expense, abnormal SG&A expense, abnormal production cost and abnormal cash flow from operations. Using a sample of firms alleged to have backdated options during the period 1998-2006 and non-backdating one-on-one matched firms, a separate regression is run for each of the real activity manipulation measures (dependent variables) on backdating and other variables.

The authors report unusually low R&D and unusually low SG&A expenses among the backdating firms. They also find evidence of unusually high production costs among backdating firms compared to the matched firms.

The findings imply that backdating firms are more aggressive in the use of real activities to manipulate earnings and the use of real activities appears to be opportunistic.

The study contributes to the literature by providing evidence of the use of real activities manipulation by firms under investigation for fraud. The authors also add to the debate on whether the use of stock options as part of compensation aligns the interest of management with the interest of shareholders.

This study examines the relation between internal control material weakness (ICMW) under Section 404 of the Sarbanes-Oxley Act (SOX) and real earnings management. Our measures of real earnings management are abnormal cash flow from operations (ABCFOs), abnormal discretionary expenses (ABDISEXP), and abnormal production cost (ABPROD). We use a sample of 1,824 manufacturing firms over the period 2004–2011 to run regressions of ABCFO, ABDISEXP, and ABPROD on ICMW and other independent variables. We find that ICMW is negatively associated with ABCFOs. Another result that emerges from this study is a positive relation between ICMW and ABPROD. Our results imply that manufacturing firms with materially weak internal controls predominantly use overproduction and excessive price discounts to manage operational activities to achieve earnings targets. As SOX Section 404 is designed to reduce the instances of firms having ICMW, our finding that ICMW firms engage in real earnings management suggests that the use of real earnings management could be reduced as SOX Section 404 succeeds in reducing ICMW.

Using the L. Bebchuk, Cohen, and Ferrell (2009) entrenchment index (E-index), the authors examine the relation between management entrenchment and the probability of a firm being implicated in the stock option backdating scandal. The authors conduct the analysis of this study using logistic regression, and they document a negative relation between the E-index and the probability of a firm being implicated in the stock option backdating scandal. The results of this study are consistent with the view that management entrenchment is advantageous to shareholders as it protects managers from short-term reporting pressures and egregious opportunistic behavior that can be detrimental to firm value.

It is difficult to overestimate the importance of the French Revolution in Russian intellectual life. One could even make the claim that the French Revolution has had a more significant impact on modern Russian history than it has had upon modern French history! Indeed, since the end of the nineteenth century, the French Revolution has become passe in France in the sense that no Frenchman has looked at it as a blueprint for current political development. While there have been cases in which some of the old revolutionary images were invoked to bolster support for certain political activities (such as support for the war against Germany), it has never been wholeheartedly re‐embraced and there has been a sense of detachment about the revolution, a sense that modern conditions were somehow different.

This chapter attempts to offer a clearer look at the historical roots of the founding of mutualist finance. Without denying that the various forms of financial mutualism may have legal and organizational roots in ancient times, the author considers what, for contemporary mutualist banks, may constitute the soul.

In its first part, the document presents the individual constructions that existed in the eighteenth and nineteenth centuries, in a context in which economic development and the industrial revolution banished the rules and standards of the former society. It refers to Utopian socialisms as opposed to the scientific solutions proposed for a new social organization and to the new solidarism according to Léon Bourgeois. Christian sources are also called to mind with social Christianity (Protestant) and social Catholicism until the birth of the social doctrine of the Church.

This frenzy of ideas as well as the confrontation with reality led to the birth, in Germany, of the first experiments with alternative finance. This is the subject of the second part of this chapter, which then develops the bank mutualism created by the founding fathers, F.W. Raiffeisen and H. Schulze-Delitzsch.

The historical description of the creation of mutualist banks brings up two major problems when talking about the “other finance”: the interest and activity of the bank. Is an ethical finance capable of proposing a credible alternative? This is a question that needs to be answered in the light of history.

This chapter attempts, more than 150 years after the fact, to demonstrate the ponderous presence of the question and the permanence of the founding ideas in order to comprehend the facts and propose ideas for analysis and construction of an “other finance.”

The monograph argues that American racism has two colours (white and black), not one; and that each racism dresses itself not in one clothing, but in four: (1) “Minimal” negative, when one race considers another race inferior to itself in degree, but not in nature; (2) “Maximal” negative, when one race regards another as inherently inferior; (3) “Minimal” positive, when one race elevates another race to a superior status in degree, but not in nature; and (4) “Maximal” positive, when one race believes that the other race is genetically superior. The monograph maintains that the needs of capitalism created black slavery; that black slavery produced white racism as a justification for black slavery; and that black racism is a backlash of white racism. The monograph concludes that the abolition of black slavery and the civil rights movement destroyed the social and political ground for white and black racism, while the modern development of capitalism is demolishing their economic and intellectual ground.

It is one thing to discuss the clauses of a prospective Bill; but to get that Bill through Parliament is a vastly different affair. It was at the Buxton L. A. Conference, in 1896, that the matter was considered, and now, after four years' working and waiting, we have advanced just so far as to have got through the House of Lords “a Bill intituled an Act to amend the Acts relating to Public Libraries, Museums, and Gymnasiums, and to regulate the liability of managers of Libraries to proceedings for libel.” At the present moment this Bill is awaiting an opportunity of coming before the Commons. With this position it must be perfectly familiar, for it was only on account of Lord Avebury's despair at finding no opening for it in the House of Commons that the Association induced Lord Windsor to pilot it through the House of Lords. If the present Parliament lives long enough there is just a chance of the measure being entered upon the statute book; but, with forecasts of an early dissolution confronting us, and with Mr. Balfour's recent announcement of the Government appropriation of private members’ days this session, the prospect is not particularly encouraging. If these slender hopes are not realised, the Bill will be none the forwarder for passing the Upper House; whilst, if it should be so fortunate as to pass the Commons without further amendment, it would at once pass into law. Lord Balcarres has been good enough to take charge of the Bill in the House of Commons, and as it is well “backed,” and has been pruned down by the Standing Committee, and has really nothing of a contentious nature in its provisions, we may reasonably hope that if it once gets a start in the House it will reach a successful finish.