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Fishing for Excuses and Performance Evaluation

Larmande, François; Ponssard, Jean-Pierre - CESifo - 2014

We study a principal-agent model in which the agent can provide ex post additional relevant information regarding his performance. In particular, he can provide a legitimate excuse, that is, evidence that a poor result is only due to factors outside his control. However, building a convincing...

Persistent link: https://www.econbiz.de/10010877776

Management Incentives under Formula Apportionment - Tax-Induced Distortions of Effort and Compensation in a Principal-Agent Setting -

Martini, Jan Thomas; Niemann, Rainer; Simons, Dirk - CESifo - 2014

The introduction of a common consolidated corporate tax base (CCCTB) and tax allocation via formula apportionment (FA) is hotly debated in the European Union (EU) since more than a decade. While the literature has thoroughly analyzed the economic effects of FA from a macro-level perspective, the...

Persistent link: https://www.econbiz.de/10010812490

A Note on the Time Series Measure of Conservatism

Brauer, Sebastian; Westermann, Frank - CESifo - 2010

Asymmetric persistence of accounting income is often tested in a regression of changes in earnings on lagged changes in …

Persistent link: https://www.econbiz.de/10008533980

Valuation of International Oil Companies –The RoACE Era

Osmundsen, Petter; Asche, Frank; Misund, Bård; Mohn, Klaus - CESifo - 2005

the last few years, financial analysts have focused strongly on short-term accounting return (RoACE) for benchmarking and …

Persistent link: https://www.econbiz.de/10005406311

Levelized Product Cost: Concept and Decision Relevance

Reichelstein, Stefan; Rohlfing-Bastian, Anna - CESifo - 2014

calculated in managerial accounting. Our analysis shows that the LC can be interpreted as the long-run marginal product cost. In …

Persistent link: https://www.econbiz.de/10010736750

Conservatism Correction for the Market-To-Book Ratio and Tobin's q

McNichols, Maureen; Rajan, Madhav V.; Reichelstein, Stefan - CESifo - 2014

-to-book ratio. The conservatism correction factor exceeds the benchmark value of one whenever the accounting for past transactions …

Persistent link: https://www.econbiz.de/10010741314

The Impact of Taxation on International Assignment Decisions - A Principal-Agent Approach

Martini, Jan Thomas; Niemann, Rainer - CESifo - 2013

projects, this assignment decision involves a complex optimization procedure. Obviously, the employees’ productivities in the … respective projects are crucial for the employer’s optimal assignment decision, but assignment can also be affected by risk …-incentive trade-offs. Moreover, taxation can alter the assignment decision, especially if employees are sent abroad as expatriates so …

Persistent link: https://www.econbiz.de/10010678210

Taxes and Financial Reporting: Evidence from Discretionary Investment Write-Offs in Italy

Arachi, Giampaolo; Bucci, Valeria - CESifo - 2010

accounting decisions to write-offs equity investments. The analysis is based on panel data for Italian companies. In the period …

Persistent link: https://www.econbiz.de/10008799740

Limited Liability, Asymmetric Taxation, and Risk Taking - Why Partial Tax Neutralities can be Harmful

Ewert, Ralf; Niemann, Rainer - CESifo - 2010

We examine the combined effects of asymmetric taxation and limited liability on optimal risk taking of investors. Given an optimal risk level in the pre-tax case under full liability, loss-offset restrictions reduce, and limited liability enhances the incentives for taking risk. For every degree...

Persistent link: https://www.econbiz.de/10008833930

Asymmetric Taxation and Performance-Based Incentive Contracts

Niemann, Rainer - CESifo - 2011

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the...

Persistent link: https://www.econbiz.de/10008853851