This study contributes to the valuation of employee stock options (ESO) in two ways: First, a new pricing model is presented, admitting a major part of calculations to be solved in closed form. Designed with a focus on good replication of empirics, the model fits with publicly observable...

Accounting standard setters are considering the wider use of fair value accounting. This paper focuses on the financial stability implications of a move in the banking sector from the current accounting framework to full fair value accounting. A simulation exercise is performed on how various...

Derivate sind Finanzinstrumente, die Unternehmen nutzen, um Geschäftsrisiken abzusichern und Spekulationsgewinne zu erzielen. Verglichen mit "einfachen" Finanzprodukten, wie Aktien, Sparbüchern und Termingeldern sind sie jedoch wesentlich abstrakter und gelten daher als schwer...

In an experiment, we model two stylized facts about capital budgeting practice, budgetary slack creation and delegation of decision-making authority. In our setting, under centralization, headquarters announces a budget, the division manager gives a cost report, and headquarters decides on the...

No concept of corporate management has spread as quickly in global business practice as the Balanced Scorecard (BSC) by Robert S. Kaplan and David P. Norton. This discussion paper examines its origins, theoretical foundation, practical distribution and key points of criticism in the literature a...

Verschiedene Prognosen weisen darauf hin, daß das Markenwertkonzept zu den einflußreichsten Themen der nächsten zehn Jahre innerhalb des Marketings werden wird. Die hier präsentierte Studie untersucht, für welche Zwecke der Markenwert verwendet werden kann, auf welche inhaltlichen...

Verschiedene Prognosen weisen darauf hin, daß das Markenwertkonzept zu den einflußreichsten Themen der nächsten zehn Jahre innerhalb des Marketings werden wird. Die hier präsentierte Studie untersucht zunächst, für welche Zwecke der Markenwert verwendet werden kann und welche Anforderungen...

When liquidity plays an important role as in times of financial crisis, asset prices in some markets may reflect the amount of liquidity available in the market rather than the future earning power of the asset. Mark-to-market accounting is not a desirable way to assess the solvency of a...

This paper determines the cost of employee stock options (ESOs) to shareholders. I present a pricing method that seeks to replicate the empirics of exercise and cancellation as good as possible. In a first step, an intensity-based pricing model of El Karoui and Martellini is adapted to the needs...