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Academic's Finance Research Seen As Relevant

A task force of the AACSB (a school-accrediting organization that also goes by the moniker Association to Advance Collegiate Schools of Business) strongly suggested that academic studies do more to fill the needs presented by American business. Even as business schools draw fire for producing too little research of real relevance to corporate America, the area of finance may be the single most notable exception -- an area in which theory after theory is used to solve daily business problems. The AACSB task force noted the work on stock-option backdating done in recent years by professors at the UNIVERSITY OF IOWA and New York University, which lay the groundwork for policy changes -- and perhaps even prosecutions of managers who abused the system by picking artificially low strike prices that gave executives "in the money" compensation that wasn't properly recorded and taxed.

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