The resource‐based view of the firm maintains that firms achieve a sustainable comparative advantage and earn superior profits by owning or controlling tangible as well as intangible strategic assets. The stakeholder view recommends that a better measure of financial performance than...

This study examines the international differences in compensation practices and relates these differences to cultural influences. The results show that the compensation practices were influenced by various cultural dimensions. Cultural differences create different social environments that affect...

This study relates to the international differences in the systematic risk of global stock exchanges to cultural differences. The results show that the level of the systematic risk of stock exchanges was influenced by various cultural dimensions. Cultural differences create different social...

Purpose – Tax compliance has been studied by analyzing the individual decision of a representative person between planning and evading taxes. A neglected aspect of tax compliance is the impact of bureaucracy and corruption. Both bureaucracy and corruption are hypothesized to have a negative...

Purpose – The purpose of this paper is to identify and test the determinates of earnings opacity internationally. The determinates are hypothesized to be the elements of social, economic and accounting order in each of the 34 countries of the study. Design/methodology/approach – A sample of...

The article hypothesizes that the level of reputation affects both the informativeness of earnings and the magnitude of discretionary accounting accrual adjustments. The hypothesis exploits the following: the positive relationship between reputation and firms' risk‐return profiles, and...

The paper investigates the link between a firm's overall disclosure quality and its corpoate reputation. The results show that the measure of corporate reputation is positively related to the disclosure measure, after controlling for market and accounting signals indicating the size of assets,...

Fudenberg and Tirole (1995) argue that concern about job security creates an incentive for managers to smooth earnings. Consistent with their model, Defond and Park (1997) show that managers smooth earnings in consideration of both current and future relative performance. To provide a more...

Based on the idea that insiders (i.e., managers and controlling shareholders) engage in earnings management to mask their diversion and rent seeking activities from outsiders, this paper presents international evidence supporting both a “diversion hypothesis” where earnings management is...

Output per worker varies significantly from one country to another. Why? Our analysis shows that differences in earnings opacity are important sources of this variation. Earnings opacity is a measure that reflects how little information there is in a firm's earnings number about its true, but...