When the sources of external capital for Continental European firms are examined, debt has historically supplied a much larger percentage of the external capital than equity markets. Moreover, firms in Continental Europe often rely more on bank debt than bonds for their external funds. The...

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...

This study examines executive compensation determinants in the U.S. banking industry. Multiple theories of executive pay are discussed and tested using a relatively homogenous sample. We perform an in-depth look at the corporate governance and ownership structure of the companies selected. We...

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...

This study examines executive compensation determinants in the U.S. financial services sector. Multiple theories of executive pay are discussed and tested using a relatively homogenous sample. We perform an in-depth look at the corporate governance and ownership structure of the companies...

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...

Economic Value Added (EVA®) has attracted considerable attention as an alternative to traditional accounting earnings for use in both valuation and incentive compensation. With a host of consultants now marketing related metrics, numerous claims have been made – most based on anecdotal...

This study tests assertions that Economic Value Added (EVA) is more highly associated with stock returns and firm values than accrual earnings, and evaluates which components of EVA, if any, contribute to these associations. Relative information content tests reveal earnings to be more highly...

Indicates that capital gains tax advantages are sufficiently strong as to produce meaningfully higher before-tax returns on high current yield securities.

We examine firm characteristics of early adoption of international financial reporting standards (IFRS) including company's value, business complexity, corporate governance characteristics, and national levels of bureaucratic formalities in business. Because early adopters benefit from a...