The current paper studies the determinants of R&D strategy and analyzes the effects of R&D decentralization on financial performance and earnings management. We use a sample of 160 U.S. Multinational companies (MNCs) between 2001 and 2006. Our results provide evidence that MNCs decentralize...

We examine how the market reacts to announcements of mergers and acquisitions (M&As) by well-performing acquirers and evaluate the results in light of three hypotheses: 1) managerial ability, 2) empire building, and 3) chief executive officer (CEO) overconfidence. Our results indicate that an...

Two of the most important duties of a chief executive officer are (1) to formulate strategy and (2) to manage his company's performance. In this article we examine the second of these tasks and discuss how corporate performance should be modeled and managed. We begin by considering the...

The objectives of this study are to analyze the impact of intellectual capital, Operating Expense to Operating Income, Debt to Equity Ratio, and Loan to Debt Ratio on Return on Assets. The population used in this study was companies that listed in Indonesia Stock Exchange (IDX) in 2008-2012....

The question of fair executive compensation could be resolved if we develop a framework and measures to determine whether executives are compensated fairly by firms. Executive compensation is a business decision, and it should be based on business performance. This paper presents tools for...

The purpose of this study is to investigate the relationship of value-based performance measures – economic value added (EVA), market value added (MVA) and cash value added (CVA) – with corporate governance using data on 41 corporations listed on the Istanbul Stock Exchange-100 Index....

We find compelling evidence that integrating Environment, Social and Governance (ESG) analyses into ongoing investment practices in Australia does not harm risk-adjusted returns. High-ESG-rated portfolios consistently provide superior outperformance, diversification efficiencies, and lower...

This study examines the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior. Agency theory suggests that RPE use in executive compensation plans improves risk sharing and strengthens incentive alignment when firm performance is exposed to common shocks. I...

Performance measurement matters in today's complex business arena irrespective of the type, nature, and volume diversity in business. If the result of the performance measurement goes wrong due to the faulty or inaccurate selection of tool(s), then the total process will prove wrong in due time...

This study examines whether and how female directors enhance innovation performance. Based on a sample of U.S. firms, this study shows that firms with more female directors on boards present a more pronounced positive association between R&D and future firm performance (measured by earnings and...