-  Faculty Experts   -  News by Topic   -  News by School Search News & Info WUSTL in the News   - Powered by Google WUSTL Home Public Affairs Home University News Medical News Sports News Radio Service Business, Law & Econ Culture & Living Science & Technology Contact Information TV/Radio Studio Visiting Our Campuses Campus Images Sports photography Commercial Filming    and Photography Commercial Use of    Names and Symbols Domain Name policy Record (newspaper) Campus Calendars WUSTL News Summary Publications Online Facts, Guides & Maps		Tip Sheet: Business, Law & Economics Tip sheets highlight timely news and events at Washington University in St. Louis. For more information on any of the stories below or for assistance in arranging interviews, please see the contact information listed with each story. For comments on the Business, Law & Economics news tips service, please contact the editor, Robert Batterson at (314) 935-5202 or batterson@olin.wustl.edu. Tips Sheets: Business, Law & Econ | Culture & Living | Medical Science & Health | Science & Technology Accounting abuses caused by changes made in '80s and '90s, says Washington University economist Media assistance: Robert Batterson - (314) 935-5202 Source: Glenn MacDonald's Web page - (314) 935-7768 [St. Louis, Mo., July/August 2002] - The corporate crisis that continues unabated due to questionable or even fraudulent accounting practices is frequently attributed to the fast-paced business environment of the last decade. But the problems are a direct result of changes in accounting procedures made over the last two decades, mainly in the '90s, says Glenn MacDonald, the John M. Olin Distinguished Professor of Economics and Strategy at the Olin School of Business at Washington University in St. Louis. MacDonald is available to comment. Glenn MacDonald MacDonald says that the intent of the changes was to make financial statements more relevant and useful for analysts and the participants in the market for corporate control. "These changes were demanded following the active corporate control market of the '80s and '90s, during which time the uselessness of much accounting information for financial decision making became obvious," MacDonald says. "The changes allow firms and their auditors more discretion in how various transactions are treated. Properly applied, this discretion can lead a firm's income statement and balance sheet to be substantially more informative. But with discretion comes the possibility of abuse, especially when a company is in trouble or under pressure."
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