The discussion on value-based performance measures is centered around the concept of residualincome. The main property of residual income is its connection to capital budgeting and the net-present-value-rule. This property is, however, not sufficient to guarantee strong goal congruencebetween...

Der vorliegende Beitrag untersucht, ob der Mehrheitsaktionär einer Gesellschaftim Vorfeld eines Zwangsausschlusses von Minderheitsaktionären (sog.Squeeze-Out) versucht, die Kapitalmarkterwartungen negativ zu beeinussen.Ein solches "manipulatives\ Verhalten wird häufig in der juristischen wie...

For mitigating the problems of transfer pricing formula apportionment (FA) is discussedintensively. However, FA could even be more harmful than transfer pricing because incomeshifting would require changing economic decisions instead of just taking advantage ofaccounting options. We analyze the...

This paper examines coordination and profit allocation in a profit-center organization using a single transfer price. The model includes compensations, taxes, and minority interests of two divisions deciding on capacity and sales.The analysis covers arm's length transfer prices which are either...

The co-movement of stocks and of fundamentals changes across the business cycle. Empiricalstudies have shown that the correlation of stock returns is stronger in crisis. Weshow that the correlation of fundamentals is the highest during crisis using a large sampleof quarterly firm revenues...

Commitment is a necessary prerequisite for gaining sustainable competitive advantage. By the way of commitment a firm is able to establish mobility barriers for capital bound in specific assets and to protect thereby supernormal profits against competition by entry barriers.(...)

The focus of the paper is on the remuneration of executives of large European banks. We describe the pay-for-performance sensitivity of the compensation and its disclosure as two dimensions of the board remuneration systems in the European countries.

This paper presents some consequences of economic theory for the regulation of corporate accounting and disclosure under Geman accounting legislation (de lege lata) and in an international context. The following implications are discussed: (i) It is argued that the economic income conception...

This paper deals with a moral hazard problem resulting from a combined hidden action and hidden information situation.

While some of the modern performance measures used in managerial accounting rely on cash flow based figuresothers try to take advantage of the information content of accounting figures. However, whether the additionalinformation content in the accrual components of earnings improves the internal...