Use the Financial Analysts Journal "Value Destruction and Financial Reporting Decisions" by John R. Graham, Campbell R. Harvey & Shiva Rajgopal

Get a copy of the latest quarterly report from Hawaiian Airlines to answer the questions below.

Questions 1

(a) According to Graham et al. (2006), on average, which measure of firm value do CEOs perceive to be the most important to outside stakeholders?

(b) According to Graham et al. (2006), are there specific types of companies that do not view this measure as most important? Which types and why? Identify and discuss at least two types of companies.

(c) Describe which measure of firm value your chosen companys CEO and top-level managers perceive most important to outside stakeholders. You need to show specific evidence for your answer.

Question 2

(a) Identify the most important quarterly earnings benchmark for average managers from Graham et al. (2006).

(b) According to Graham et al. (2006), what additional benchmark matters to meet when numerous analysts follow a company?

(c) In your chosen companys most recent quarterly report, identify and explain against which benchmark the company evaluates its performance.

(d) Discuss the risks you believe might affect your chosen companys earnings and earnings benchmark. You need to show specific evidence for your answer.

Question 3

(a) Identify and discuss the top 3 reasons why managers want to beat earnings targets from Graham et al. (2006).

(b) Identify and discuss any red flags that would raise your suspicion that the managers of your chosen company want to meet or beat earnings targets. Explain why their financial reporting incentives are similar to those of the average CEOs and managers, as described in Graham et al. (2006). You need to show specific evidence for your response.

(b) If you think the managers of your chosen company do not want to meet or beat earnings targets, or you think they are indifferent to beating earnings targets, explain why their financial reporting incentives are different from those faced by the average CEOs and managers in general, as described in Graham et al. (2006). You need to show specific evidence for your response.