McLaughlin Prize for Ethics in Accounting Research: LESSONS LEARNED Forwards: Wayne Thomas .............................................................................................................................................................1 Glen McLaughlin ..........................................................................................................................................................2 Frances L. Ayres ............................................................................................................................................................ 3 Dipankar Ghosh ........................................................................................................................................................... 4 Terry Shevlin .................................................................................................................................................................5 Stephen Loeb ................................................................................................................................................................5 McLaughlin Prize Search Committee Members .............................................................................................................6 Award Year Paper Selected for Prize Authors Values as the Foundation for Moral 1998-1999 Judgment:Theory and Evidence in an Patricia Casey Douglas and Bill N. Schwartz Accounting Context. John Harry Evans III, R. Lynn Hannan, Ranjani 1999-2000 Honesty in Managerial Reporting. Krishnan and Donald V. Moser Impact of Cognitive Moral Judgment Ability 2000-2001 John Koeplin and Diane Roberts on Knowledge of Red Flags. The Reputation Effects of Earnings 2001-2002 Steven E. Kaplan and Susan P. Ravenscroft Management in the Internal Labor Market. A Reexamination of Behavior in Experimental Audit Markets: The Effects of Moral Jeffrey Schatzberg, Galen R. Sevcik, Brian Shapiro, 2002-2003 Reasoning and Economic Incentives on Linda Thorne and R.S. Olusegun Wallace Auditor Reporting and Fees. The Effects of Information Systems on R. Lynn Hannan, Frederick W. Rankin and Kristy L. 2003-2004 Honesty in Managerial Reporting: A Towr y Behavioral Perspective. Optimal Contracting with Endogenous 2004-2005 Paul Fischer and Steven Huddart Reporting Norms. The Relation Between Executive 2005-2006 Compensation and Earnings Management: Mary Ellen Carter, Luann J. Lynch and Sarah Zechman Changes in Post-Sarbanes-Oxley Era. Corporate Governance Ratings and Financial 2006-2007 Mohammad J. Abdolmohammadi and William J. Read Restatements. Whistle-Blowing: Target Firm Characteristics 2007-2008 Robert M. Bowen, Andy Call and Shivaram Rajgopal and Economic Consequences. Wayne Thomas .............................................................................................................................................................1 Why do CFOs Become Involved in Material 2008-2009 Mei Feng, Weili Ge, Shuqing Luo and Terry J. Shevlin Glen McLaughlin ..........................................................................................................................................................2 Accounting Manipulations? Frances L. Ayres ............................................................................................................................................................ 3 Dipankar Ghosh ...........................................................................................................................................................4 Internal Audit Outsourcing and the Risk of Terry Shevlin .................................................................................................................................................................5 2009-2010 Misleading or Fraudulent Financial Reporting: Doug Prawitt, Nathan Sharp and David A. Wood Stephen Loeb ................................................................................................................................................................5 Did Sarbanes-Oxley Get it Wrong? McLaughlin Prize Search Committee Members .............................................................................................................6 SEC Enforcement: Does Forthright Disclosure 2010-2011 Rebecca Files and Cooperation Really Matter? The Impact of Rank and File Stock Options 2011-2012 Andy Call, Simi Kedia and Shivaram Rajgopal on Employee Whistleblowing. Honoring One’s Word: CEO Integrity and 2012-2013 Shane Dikolli, William Mayew and Thomas Steffen Accruals Quality. Changes in Corporate Governance Following 2013-2014 Allegations of Fraud Against Shareholders Lakshmana K. Krishna-Moorthy Versus Fraud Against the Government. 2014-2015 Stock Trades of SEC Employees. Roger White and Shivaram Rajgopal Boiling the Frog Slowly: The Immersion of Ikseon Suh, John T. Sweeney, Kristina Linke and 2015-2016 C-Suite Financial Executives Into Fraud. Joseph Wall Improving Experienced Auditors’ Detection of Jessen L. Hobson, William Mayew, Mark Peecher and 2016-2017 Deception in CEO Narratives. Mohan Venkatachalam Factors that Impair Auditors’ Ability to See 2017-2018 the Ethical Implications of Their Behavior on Michele Frank and Vicky Hoffman Actual Audits. The Value of Assurance and Ethics in Difficult Andrew C. Stuart, Jean C. Bedard and Cynthia E. 2018-2019 Times: Corporate Social Responsibility Clark Disclosures and Investor Decisions. Audit Partners’ Judgments and Decision Jeffrey Cohen, Jennifer Joe, Jay Thibodeau and Greg 2019-2020 Making Processes in the Audit of Internal Trompeter Control over Financial Reporting. * The table of contents references the paper titles and authors winning the awards. In some cases, there were author and/or title changes prior to publication. Individual pages reference the current status, title and authors of each paper. The Glen McLaughlin Prize for Accounting Ethics The Glen McLaughlin Prize for Accounting Ethics has become known as the “gold standard” around the country for highlighting important studies in accounting ethics. The award has brought top scholars from some of the most prestigious universities across the country to the Norman campus. Our faculty have been able to interact in a meaningful way and to consider deeply the impact that ethics has not only in accounting, but at the core of any institution. Beyond what the award has meant to the John T. Steed School of Accounting, the award portrays the very essence of the Michael F. Price College of Business. Price College assumes a leadership role on the University of Oklahoma Norman campus, representing the largest professional college and educating more than 4,500 students each year in our undergraduate, graduate, Ph.D. and executive programs. As Mr. McLaughlin has made so evident, ethics must be at the core of leadership and lasting success. It is an honor to have this award and the McLaughlin name associated with the Steed School of Accounting and the Price College of Business. I also want to express my sincere appreciation to Mr. McLaughlin for his generous support over the years. His willingness to provide funding for this award, as well as the McLaughlin Chair in Accounting Ethics, has truly made a difference to the College. He represents the finest of our alumni. His financial support has provided a path to national prominence for Price College, and his focus on ethics in business practices will leave a legacy that will influence how accountants think about ethical issues long into the future. Sincerely, Wayne Thomas Interim Dean W.K. Newton Chair of Accounting George Lynn Cross Research Professor 1 Glen McLaughlin graduated from the University of Oklahoma in 1956. As an OU student, he received many awards for academic distinction, including the Gold Letzeiser for Outstanding Senior Man and the Pe-et Honor Society, composed of the top 10 seniors. Following OU graduation, McLaughlin served six years’ active duty as a pilot in the U.S. Air Force. He went on to earn an MBA from Harvard University and directed the financial operations of several major corporations. For 11 years, McLaughlin was senior vice president and CFO of Four-Phase Systems, a company that in 1971 shipped the world’s first solid-state computer for distributed data processing. He raised $750 million to help finance the company’s growth. And in 1995, McLaughlin co-founded the “Band of Angels,” a Silicon Valley venture capital group still considered one of the best in the country. In 1989, when OU began a $100 million centennial fundraising campaign, McLaughlin was on board and, with the guidance of Accounting Professor Frances Ayres, he established the Glen McLaughlin Prize in accounting ethics. In addition, he endowed the Glen McLaughlin Chair in Business Ethics within the Steed School of Accounting at Price College. A venture capital “angel” investor and philanthropist, he has made substantial contributions to nonprofit organizations and has founded more than 15 companies to see them prosper and merge with some of Silicon Valley’s high-tech giants. McLaughlin has served on the boards of over 30 corporations, provided hundreds of millions of dollars in start-up capital for emerging companies and contributed millions more to worthy causes. An Eagle Scout in his youth, he has continued to serve and support the Boy Scouts of America. He is on the BSA National Executive Board and has contributed generously to the organization. From 1993 to 2000, McLaughlin and his wife, Ellen, led the Scouts’ Western Region Endowment Campaign, which raised