How Accountants can Fight Activist Investors

The case of the socially disruptive breakup of the century-old Timken provides an example of how accountants could have exercised creative leadership to push back against self-interested constituencies who manipulated... [ view full abstract ]

The case of the socially disruptive breakup of the century-old Timken provides an example of how accountants could have exercised creative leadership to push back against self-interested constituencies who manipulated accounting data. Accountants can exercise creativity in educating decision makers about the uncertainty inherent in accounting estimates. Accountants can present information in a nuanced manner that will pierce the illusion that there is a single rational choice. By presenting information in a creative and nuanced manner, accountants can empower decision makers to make courageous, reasonable choices that balance financial realities with the public interest.