We study the consequences of implementing and communicating Value Based Management (VBM) systems on information asymmetries and the cost of capital. We analyse the firms' reporting on internal control systems as the source of information for market participants. In addition, literature posits...

Numerous empirical studies provide evidence on the value relevance of capitalizing expenditures on intangibles such as research & development (Lev and Sougiannis 1996, Hand 2003). However, accounting standards in many countries, such as the U.S. or Germany, prohibit capitalizing these. In this...

This paper studies the role of the accrual process for providing value relevant information on intangibles. Expensing research & development (R&D) expenditures is, by nature, equivalent to cash accounting. Prior studies have found that accrual information has superior explanatory power for...