This paper seeks to draw attention to a flaw in the firm’s Free Cash Flow model and related statement widely accepted in Corporate Finance. We argue that the common offset of any Current Liabilities against Current Assets distorts the FCF size, composition, and volatility, thereby misstating...

This work is focused on identifying a circular pull production control system (PPCS) and make emphasis on the presence of a stability attribute. It is an introductory paper to an extended study of macroeconomic financial stability in a physically open but systemic closed system. Previous work...

Many accounting textbooks state that the opportunity cost of idle fixed assets is zero. A few exceptions may refer to factors such as repair and overhaul, employee vacation and congestion that give rise to strictly positive opportunity cost. We show that in important and frequently encountered...

Many accounting textbooks state that the opportunity cost of idle fixed assets is zero. A few exceptions refer to repair, overhaul, employee vacation and congestion, giving rise to positive opportunity cost. We show that in important and frequently encountered situations, idled assets have...

This discussion paper resulted in a publication in the 'Journal of Economics and Management Strategy', forthcoming.<P> Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to be dysfunctional (gaming). This paper applies the empirical...</p>

We examine the importance of geographical proximity to coal as a factor underpinning comparative European economic development during the Industrial Revolution. Our analysis exploits geographical variation in city and coalfield locations, alongside temporal variation in the availability of...

Still in recent research a low productive peasant economy and traditional peasant society are often made responsible for Southeast Europe's economic backwardness prior to 1945. However, the radical change of paradigm after 1960 in the view of peasants as agents of economic growth and of their...

In the Middle Ages women in the Italian Alps had substantially more rights on collective properties than in the Modern Age. The documental evidence shows a progressive erosion of women’s rights and a convergence toward gender-biased inheritance systems. We tracked the evolution of inheritance...

From an extensive dataset of wheat yields at municipal level in mid eighteenth-century Spain, a detailed statistical analysis indicates that the differences in wheat yields were mainly a consequence of different natural conditions, and that demand did not have a significant influence....