Victor Defeo

• Victor Defeo, Richard A. Lambert, David Larcker (1989), The Executive Compensation Effects of Equity-for-Debt Swaps, The Accounting Review, (April), pp. 201-227. Abstract

  This paper provides an analysis of the association between the accounting gain produced by an equity-for-debt swap and executive compensation. Our results suggest that the executives of firms completing a swap transaction experience an increase in cash compensation (salary plus bonus). The increase is largest both in absolute magnitude and in statistical significance for firms whose compensation plans are more “accounting-oriented” (i.e., firms whose executives would be expected to experience the greatest increase in compensation under the hypothesis that firm’s compensation plan is not adjusted for the accounting gain produced by the swap). We also find that, on average, the value of the executives’ personal equity holdings decreases in the period surrounding the announcement of the swap. The magnitude of this decrease is, on average, comparable in size to the increase in their compensation. However, there is some weak evidence that executives of firms whose compensation plans are more “accounting-oriented” experience a statistically significant increase in their total wealth (i.e., the sum of excess compensation and the value of personal equity holdings) as a result of the swap transaction.

Past Courses

• ACCT1010 - Acct & Financial Report

  This course is an introduction to the basic concepts and standards underlying financial accounting systems. Several important concepts will be studied in detail, including: revenue recognition, inventory, long-lived assets, present value, and long term liabilities. The course emphasizes the construction of the basic financial accounting statements - the income statement, balance sheet, and cash flow statement - as well as their interpretation.

• ACCT1020 - Strategic Cost Analysis

  Strategic Cost Analysis is the process of analyzing and managing costs in order to improve the strategic position of the business. This goal can be accomplished by having a thorough understanding of which activities and costs support an organization's strategic position and which activities and costs either weaken it or have no impact. Subsequent cost management efforts can then focus on reducing or limiting expenditures on activities that add little or no strategic value, while increasing expenditures on activities that support the strategic position of the organization. Performance can then be evaluated to ensure that the chosen actions are taken, and that these actions are yielding improved strategic performance. Throughout the course, a strategic cost analysis and management framework will be applied across functions and organizations to highlight the cost analysis and performance evaluation methods available to forecast financial performance and improve strategic position.

• ACCT6130 - Fin and Mngl Acct

  This course provides an introduction to both financial and managerial accounting, and emphasizes the analysis and evaluation of accounting information as part of the managerial processes of planning, decision-making, and control. A large aspect of the course covers the fundamentals of financial accounting. The objective is to provide a basic overview of financial accounting, including basic accounting concepts and principles, as well as the structure of the income statement, balance sheet, and statement of cash flows. The course also introduces elements of managerial accounting and emphasizes the development and use of accounting information for internal decisions. Topics include cost behavior and analysis, product and service costing, and relevant costs for internal decision-making. This course is recommended for students who will be using accounting information for managing manufacturing and service operations, controlling costs, and making strategic decisions, as well as those going into general consulting or thinking of starting their own businesses.

Knowledge @ Wharton

• Why Companies Need to Address Caregiver Burnout, Knowledge @ Wharton - 07/30/2024
• Slow Burn | Jisung Park, Knowledge @ Wharton - 07/30/2024
• How to Improve Work-life Balance for Caregiving Employees, Knowledge @ Wharton - 07/30/2024
• Why ETFs Are Scoring Over Mutual Funds, Knowledge @ Wharton - 07/29/2024
• The AI-Savvy Leader: Building the Leadership Skills to Make AI Work, Knowledge @ Wharton - 07/29/2024
• Summer Reading: Wharton Faculty Picks, Knowledge @ Wharton - 07/23/2024
• What Does Your Writing Style Say About You?, Knowledge @ Wharton - 07/23/2024
• How to Align Private Equity Motives with Nursing Home Outcomes, Knowledge @ Wharton - 07/22/2024
• Baby Bust | Stewart Friedman, Knowledge @ Wharton - 07/16/2024
• Why Are Private Equity Firms Buying Mental Health Clinics?, Knowledge @ Wharton - 07/15/2024