Recent studies have documented an association between managerial compensation and firm dividend policy. Bhattacharyya (2000) develops a model of dividend payout that is based in the principal-agent paradigm. In Bhattacharyya's model, managerial quality and effort are unobservable to shareholders...

Purpose -This paper seeks to present and test a model of the association between dividend payout and executive compensation. Design/methodology/approach - The authors develop a model based on Bhattacharyya whereby managerial quality is unobservable to shareholders, and therefore first-best...

Recent pronouncements by professional accounting bodies in both the United States and Canada, and concerns about lowering audit fees, both fuel and reflect a strong interest in the participation of internal auditors in the external audit. This paper presents the results of a partial least...

The number of joint ventures, and the number of industries in which joint ventures are commonplace, have expanded considerably over the past twenty years. The prescribed treatment for accounting for interests in joint ventures varies across nations, with some requiring the equity method (e. g.,...

In this study, we investigate the effect of political uncertainty on the association between stock price metrics and accounting values. We compare market-to-book value associations of a sample of firms headquartered in Quebec with those of a sample of Canadian firms headquartered outside of...

Empirical modeling of dividends has been dominated by Lintner (1956). However, Lintner's model suffers from the logical paradox that if companies have target payout ratios then in the steady state the companies will have reached those target payout ratios. Moreover as demon-strated by Bond and...

Using a theoretical extension of the Friedman and Savage (1948) utility function developed in Bhattacharyya (2003), we predict that for financial assets with negative expected returns, expected return will be a declining and convex function of skewness. Using a sample of U.S. state lottery...