Kevin Kaiser and Aris Stouraitis present preliminary evidence on stock market reaction to divestiture announcements by European firms. Included in their sample are divestitures by French, German, Swedish and UK firms. Their findings include: (1) stock price reaction during initial announcements...

This article examines the changing role of financial accounting in the former East Germany as that country underwent the transition from a centrally planned to a market-driven economy. The German government's insistence on a sales model of privatization in preference to some form of mass...

Despite the wide acceptance of DCF valuation and its corollary that value is created only by earning more than the cost of capital, very few companies use performance measures that focus on corporate efficiency in using capital-measures such as return on capital (ROC) or economic value added...

This article argues that the Expectations-Based Management (EBM) measure proposed by Copeland and Dolgoff (in the previous article) is essentially the same measure that EVA companies have used for years as the basis for performance evaluation and incentive compensation. After pointing out that...

This paper assesses the ability of financial statement variables to forecast sensitivities to systematic risk factors generated by a multifactor, macroeconomic forces model. Forecasts of beta derived from financial variables are shown to outperform naive, random walk forecasts, although...