This paper investigates whether firms employing IAS or US GAAP exhibit measurable differences in proxies for information asymmetry and market liquidity. Sample firms are drawn from the "New Market" at the Frankfurt Stock Exchange. All firms listed in this market segment are required to provide...

Open source projects produce goods or standards that do not allow for the appropriation of private returns by those who contribute to these projects. In this paper we analyze why programmers will nevertheless invest their time and effort to code open source software. We argue that the particular...

Executive Stock Option Programs (SOPs) have become the dominant compensation instrument for top-management in recent years. The incentive effects of an SOP both with respect to corporate investment and financing decisions critically depend on the design of the SOP. A specific problem in...

A widely recognized paper by Colin Mayer (1988) has led to a profound revision of academic thinking about financing patterns of corporations in different countries. Using flow-of-funds data instead of balance sheet data, Mayer and others who followed his lead found that internal financing is the...

Earnings less riskfree Interest Charge (ERIC) is a new residual income concept forValue Based Management (VBM), which takes the true risk and time preferences ofshareholders into account. In this paper management based on ERIC is discussedfrom a theoretical and from a more practical point of...