We investigate, using data on US manufacturing firms, how and when corporate governance affects managers’ decisions to use discretionary accruals and thereby artificially influence company financial reports. We employ 3SLS to study the relationship between financial status, corporate...

Four concepts of cash flow are discussed and compared: simple cash flow, operating activities cash flow, net operating profit after taxes, and free cash flow. The differences between these concepts are shown to be very large. Issues connected to terminal value are presented. Finally, the idea of...

Neoclassical economic theory describes employee compensation as being equal to the worker's marginal revenue product. Other explanations of the wage formation process exist. For example, concept formation may enable employees to manipulate organizations and thereby receive higher compensation...

This paper considers whether real estate will ever again be a good place for the average American homeowner, investor, or speculator. Looking at the rate of change in real estate prices over the past few decades and the rate of inflation one sees a correspondence. The faster the rate of change...

This book takes an entirely new look at how companies ought to be managed. It argues that managers need to focus on how corporate decisions affect the firm's cash. The author, who is well known in the fields of management and crisis management, suggests that companies that follow the paradigm...