In early July, several DART students had the opportunity to participate in the “XIV. Summer School on Accounting
2018” in Munich. This year, Jonathan Glover (Columbia University) gave a lecture on “Accounting, Relationships, and Contracts”, focusing on the contracting role in accounting, where contracting includes both explicit contracts that can be enforced by the courts and implicit/relational contracts that must be self‐enforcing (typically through repeated encounters). The papers discussed covered a wide range of topics, such as earnings management, team incentives for mutual monitoring,
relational incentives and bonus pools, relational contracts and the value of relationships, and accounting conservatism. In addition, Jonathan Glover presented some of his current working papers and discussed them with the participants.