Until 2001, certain stock acquisitions could be accounted for as pooling-of-interests. There were concerns that pooling was associated with earnings fixation and weak corporate governance. I investigate the cross-sectional variation in the purchase-pooling choice and its association with...

It has been well-established that both stock prices and accounting earnings are used to evaluate and compensate CEOs. Prior studies often interpret the higher sensitivity of compensation revisions to stock prices (relative to accounting earnings) as the superior role of price formation versus...

One of the most important goals of a business unit is creating value and wealth for its shareholders and attracting them for more investment. The success of management, and consequently the success of the business unit, is measured by the level of value created for its shareholders. Economic...

This paper applies Magni's (2011) Aggregate Return On Investment (AROI)to investment performance measurement. We show that the ratio of undiscountednet cash flow to undiscounted invested capital is not a naive metric (itseemingly does not take the time value of money into account). It is a...

There is a standard trade-off in contracts between the provision of incentives and insurance. We hypothesize that this trade-off influences the precision with which firm performance is measured. We find that firm outcomes are measured less precisely when chance plays a large role in these...

The research question we want to answer in this paper is: have the financial variables of the triple-entry framework of momentum accounting explanatory and predictive power? A detailed example is presented of Royal Philips Electronics N.V. Although in this study we cannot generalize the result...