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"The typical public corporation now runs on a valuation treadmill . If a company's stock is traded widely in public markets, it must take care to keep up with the pace of market expectations. Whether it be through developing transformative new products or consistently meeting quarterly financial projections, a public company must continually convince investors that it will generate profits in future years. If investors become concerned that a company's profitability is slowing, they can drastically readjust its valuation and its stock price will fall"--
List of contents
1. Introduction; 2. Xerox and the Pressure to Meet Projections; 3. Penn Central and the Decline of Managerialism; 4. Apple and the Controversy of Projections Litigation; 5. Enron and Sarbanes-Oxley; 6. Citigroup and the Financial Crisis of 2008; 7. General Electric and the Problem of Earnings Management; 8. The Future of Securities Fraud Regulation; 9. Conclusion; Notes.
About the author
James J. Park is Professor of Law at UCLA School of Law. He writes and teaches in the areas of securities regulation and corporate law. He was an editor of Can Delaware Be Dethroned? Evaluating Delaware's Dominance of Corporate Law (with Iman Anabtawi, Stephen Bainbridge, & Sung Hui Kim, 2018).
Summary
This book analyzes case studies of paradigmatic securities frauds to show how market pressure to deliver short-term results creates incentives for public companies to deceive investors. The book will engage scholars and students of business law, as well as general readers interested in business culture and white-collar crime.
Foreword
This book analyzes paradigmatic securities frauds to show how market pressure to deliver short-term results incentivizes companies to deceive investors.
