This paper reviews and proposes additional research concerning the role of publicly reported financial accounting information in the governance processes of corporations. We first review and analyze research on the use of financial accounting measures in managerial incentive plans and explore...

This study focuses on measurements used by executives and product design managers to evaluate the performance of individual product designers, product design groups, and product development teams. Primary data were collected from design managers at two workshops and via a questionnaire. The...

Using data from FTSE 350 firms, we examine factors influencing explicit relative performance evaluation (RPE) conditions in performance-vested equity grants. We provide exploratory evidence on whether the use or characteristics of RPE are associated with efforts to improve incentives by removing...

This paper studies the capital budgeting process in a setting where a manager is privately informed about the profitability of an investment project and enjoys non-pecuniary benefits of control (empire benefits). I characterize the optimal required rate of return and show that a delegation...

Alex Pearson, manager of Charley's Family Steak House number two, is preparing for his upcoming meeting with Charley Turner, owner of the steak house. The purpose of the meeting is to discuss the restaurant's 2004 results, how they compared to budget, and how Pearson performed during his second...

SUBJECT AREAS: Corporate Finance, Valuation, Capital Budgeting, Investment Policy, Economic Value Added, EVA, Market Value Added, MVA, Net Present Value, NPV, cash flows, free cash flows real free cash flowsThis technical note studies Economic Value Added, EVA. First, a conceptual framework...

Alex Pearson has just completed his first year as manager of Charley's Family Steak House number two. Actual profit for the year was well below budgeted profit. Pearson is preparing for a meeting with Charley Turner, the restaurant's owner, to discuss the 2003 operating results and Pearson's...

World Bank (WB) has played a crucial role in the development of the economies of the world, especially in the emerging countries. We recognize the leadership it has shown and the intellectual authority the WB has on planning offices, practitioners and consultants. For this reason it is very...