Dogbert Knows Earnings Management.

The second one is pretty timely - particularly since pension assumptions are covered in Level 2 of the CFA curriculum.

Stretching Accounts Payables

"Stretching" Accounts Payables (i.e. paying accounts payables past the due date without remitting the penalty, or paying after the discount period has expired but still taking the discount) is a common way that some firms gain cheap financing. However, a firm can only get away with it if they have an imbalance of power between them and the vendor. Here are a few Dilbert cartoons that illustrate the basic idea almost perfectly:



Unfortunately, unless you're a Wal-Mart (notorious for abusing their vendors), the flyswatter eventually ends up in the vendors' hands. So, "free" isn't always "free".

If a textbook vendor was smart, they'd just use Scott Adams for most of their illustrations.

Dilbert's A Bayesian

Nuff said.

Job Satisfaction

Best line of the day: "I'm drowning and monkeys dressed as lifeguards are throwing me anchors"


I'm sure I'll find a way to use that in the next few days.

Scott Adams on Board Governance

A few years back I read a study on board practices. It said that the typical director averaged less than three hours a week on board-related duties. This cartoon by Scott Adams of Dilbert fame pretty much nails it.


Since I'm teaching Corporate Finance this spring, I'm sure this will make it into the class somehow.

Another Cartoon For My Office Door

I hope I'm usually the guy on at the front of the desk.

Stockholder Meetings

I'm sure this will somehow make it into class this year (probably when I talk about pay-performance sensitivity). I particularly like the fact that there's not one, but two pointy-headed bosses at the table. Let's hope they have policies against office romances.