Question: 1. Would a regular quarterly announcement of earnings-per-share which is "good" be an example of signaling? What about early adoption of a new accounting standard that would reduce income:
2. If accounting were not regulated, we would not be facing the difficult problems that have arisen as a result of Enron and other corporate auditing failures. Do you agree lath this statement? Explain.
3. Evaluate Ronens financial statement insurance proposal.