Like all corporate buzzwords, "economic value added" combines some truth with some chaff. This article presents recent empirical evidence that helps to sort them out. Long known as "residual income," economic value added has been marketed successfully by consultancies in recent years as a...

In 1993, Section 162(m) of the U.S. Internal Revenue Code was passed into law. The intent of this law was to reign in outsized executive compensation by eliminating the tax-deductibility of executive compensation above $1 million unless the excess compensation was performance-based. One...

In this paper we explore two regulatory paradigms, with an emphasis on the regulation of executive compensation. An example of the traditional rule-based paradigm is Internal Revenue Code Section 162(m) in which a tax-deductible cap was passed into law to limit executive compensation. We...

In this paper, we examine the relative information content of two cash earnings measures (earnings with amortization of intangibles added back and earnings before interest, taxes, depreciation, and amortization), one traditional accrual accounting earnings measure (earnings before extraordinary...