18 January, 2012 | (01 hr)
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U.S. investors just endured the worst stock market decade in recent history, witnessed numerous corporate accounting scandals, and were exposed to a stream of managerial pay excesses and stock options manipulations. No wonder they desert equities in droves and push legislators to constrain managers' decision space and power. The Sarbanes-Oxley Act, the Dodd-Frank legislation, and the recent enactment of investors' mandatory "say on pay" vote regarding managerial compensation are recent outcomes of investors' deep resentment of public companies and their managers. Obviously executives have to respond to ensure the continued success of their companies and their own careers. But how do we alleviate the deep investor disillusionment and regain and maintain shareholders' trust? Not easy. Managers' strategies and actions are hindered by widespread myths and misconceptions about capital markets distorting their policies. Managers believe, for example, that investors are myopic, obsessed with quarterly earnings; that missing the earnings consensus is a calamity; that shareholder lawsuits are on the rise and are frivolous; that shareholder activism is a nuisance; and that no information should be publicly disclosed beyond the legally required. These beliefs and others are factually wrong but they shape managers' capital markets strategies.
In this webcast Professor Baruch Lev will critically examine managers’ beliefs and chart a coherent, practicable set of policies and actions to regain and maintain investors' support. These will be based on his recently published book: Winning Investors Over: Surprising Truths About Honesty, Earnings Guidance, and Other Ways to Boost Your Stock Price (Harvard Business Review Press, 2012).
- Learn how to alleviate the deep investor disillusionment and regain and maintain shareholders' trust
- Chart a coherent, practicable set of policies and actions to regain and maintain investors' support
- Executives involved in Finance, Accounting, Audit, Investor Relations, Legal and Corporate Governance, and the C-Suite
Xiaohui (Janet) Hao, PhD
Janet Hao is a Senior Economist with the economics program of The Conference Board. She specializes in research on innovation, intangible assets and economic growth. In particular, she measures investment in innovations by commercial banks, investment banks, and insurance companies.
She a...Full Bio
Baruch Lev, PhD
Baruch Lev is the director of the Vincent C. Ross Institute of Accounting Research and the Philip Bardes Professor of Accounting and Finance at New York University Stern School of Business. His primary research areas of interest include corporate governance; earnings management; financial account...Full Bio