Earnings Management and Measurement Error

In this paper I consider the impact of a noisy indicator regarding a manager’s manipulative behavior on optimal effort incentives and the extent of earnings management. The analysis in this paper extends a twotask, single performance measure LEN model by including a binary random variable. I show that contracting on the noisy indicator variable is not always useful. More specifically, the principal uses the indicator variable to prevent earnings management only under conditions where manipulative behavior is not excessive. Thus, under conditions of excessive earnings management, accounting adjustments that yield a more congruent overall performance measure can be more effective than an appraisal of the existence of earnings management to mitigate the earnings management problem.

Effects of camera aperture correction on keying and compositing of broadcast video

This contribution discusses the effects of camera aperture correction in broadcast video on colour-based keying. The aperture correction is used to ’sharpen’ an image and is one element that distinguishes the ’TV-look’ from ’film-look’. ’If a very high level of sharpening is applied, as is the case in many TV productions then this significantly shifts the colours around object boundaries with hight contrast. This paper discusses these effects and their impact on keying and describes a simple low-pass filter to compensate for them. Tests with colour-based segmentation algorithms show that the proposed compensation is an effective way of decreasing the keying artefacts on object boundaries.

A user supported object tracking framework for interactive video production

We present a user supported tracking framework that combines automatic tracking with extended user input to create error free tracking results that are suitable for interactive video production. The goal of our approach is to keep the necessary user input as small as possible. In our framework, the user can select between different tracking algorithms - existing ones and new ones that are described in this paper. Furthermore, the user can automatically fuse the results of different tracking algorithms with our robust fusion approach. The tracked object can be marked in more than one frame, which can significantly improve the tracking result. After tracking, the user can validate the results in an easy way, thanks to the support of a powerful interpolation technique. The tracking results are iteratively improved until the complete track has been found. After the iterative editing process the tracking result of each object is stored in an interactive video file that can be loaded by our player for interactive videos.