Earnings management: the case of political costs over business cycles
Article Abstract:
A number of ethical issues are raised by earnings management practices, in which controls such as incentive plans are used to try to align the aims of corporate managers with the interests of a company's stockholders. Within this framework, it is also interesting to consider the case of political costs, government-imposed wealth transfers, over business cycles. In this case, the incentives of companies to manipulate earnings seem to vary according to economic conditions. There are circumstances in which managers may seek to decrease rather than increase reported earnings. This earnings management can vary over business cycles.
Publication Name: Business & Professional Ethics Journal
Subject: Philosophy and religion
ISSN: 0277-2027
Year: 1996
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Nozick on sunk costs
Article Abstract:
Robert Nozick's five arguments fail to counter the sunk costs doctrine held by economists. Sunk costs doctrine, an offshoot of the opportunity cost concept, states that all costs incurred in the past should not be construed as costs of the present or the future. Nozick's first and fourth arguments focus on the deliberate incurring of costs, since in future the subject may count sunk costs, thereby leading to a difference in behavior. But they fail to counter the doctrine since they are stuck with several faulty ingredients, while the second, third, and fifth arguments fail due to minor errors.
Publication Name: Ethics
Subject: Philosophy and religion
ISSN: 0014-1704
Year: 1996
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Smokers, virgins, equity and health care costs
Article Abstract:
Julian Le Grand's proposal that smokers alone should be held responsible for smoking-related health care costs should not be adopted. Situations are regarded as inequitable, according to Le Grand, when a person is in a disadvantageous position due to factors which are not in the person's control. Situations are equitable when disadvantages arise due to personal choices. The application of Le Grand's principle of equity would lead to a peculiar society, however. Le Grand's account of equity is unacceptable, and his plan is unworkable since it could not be extended to all kinds of risk taking.
Publication Name: Journal of Medical Ethics
Subject: Philosophy and religion
ISSN: 0306-6800
Year: 1995
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