We analyse to what extent the accrual anomaly is related to the choice of the accounting system as well as firm-level heterogeneity in corporate governance mechanisms. Using a unique dataset of listed German firms over the period 1995 to 2005 we first corroborate former results indicating that...

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...

In their joint framework project, the FASB and the IASB recently proposeddropping stewardship as a separate objective of financial accounting, because the Boards view stewardship and valuation usefulness as compatible sub-objectives ranking under an overall objective of decision usefulness. This...

The purpose of this paper is to analyse the role of auditors and the legal standards of auditing in the German system of corporate governance in the light of recent crises of large quoted companies. The arguments are developed from an economic-analysis-of-law perspective. Some of the conclusions...

In mid-2008, high employment and low unemployment rates characterised the Estonian labour marketin comparison with the average of the EU15 countries. While aggregate outcomes improvedduring 2000-07, large inequalities persisted across regions, ethnic groups, and workers with different...

We analyze the following questions associated with flexible outsourcing under partlyimperfect dual domestic labour markets, where high skilled workers participate in firm’s profitvia profit sharing: How does the implementation of profit sharing influence flexibleoutsourcing? What is the...

Many countries around the world have large public pension programs. Traditionally, these programshave been used to induce retirement by the elderly in order to free up jobs for the young andto redistribute income across generations. This paper provides an efficiency rationale for the...

In recent years, many countries have experienced a significant shift in demographic patterns towards the elderly. This phenomenon poses numerous challenges for the design of public pension programs and labor market policies. To better understand how public policy should be designed in response...

Researchers have incorporated labor or credit market frictions in isolation within simple neoclassical models to open up a role for institutions, inject realism into their models and examine the impact of these distortions on output and employment. We present an overlapping generations model...

Firms select not only how many, but also which workers to hire. Yet, in standard searchmodels of the labor market, all workers have the same probability of being hired. We arguethat selective hiring crucially affects welfare analysis. Our model is isomorphic to a searchmodel under random hiring...