Accounting

In periods of economic downturn, analysts’ forecasts are generally more optimistic than conditions warrant. On the other hand, analysts are very accurate reflecting positive signs. But new research shows that when analysts have access to an in-house economist, they are less likely to paint a rosy picture about discouraging news, making their work more valuable to investors.

AP reporter Tom Murphy interviewed Professor of Practice Donald Goldman in the wake of Pfizer’s decision to scrap a tax-saving $160-billion overseas merger.

Turnover in key positions is disruptive to the business, costly and consumes time. Sometimes these valued employees want “a piece of the pie,” but some owners are not wiling give up any ownership. In those cases, how can owners structure compensation so that their talent will stay and so that incentives remain appropriate?

Do the executives running big public accounting firms really know how the CPAs who work for them would respond when faced with ethical dilemmas? New research suggests they may not.

The School of Accountancy's Professor of Practice Donald Goldman offers a cautionary tale that illustrates the consequences of cutting corners when starting a business. In this case, saving a few dollars on legal advice in the beginning cost $3 million in the end.