Purpose – The purpose of this paper is to investigate the impact of the Sarbanes-Oxley Act (SOX) on market-based measures of earnings quality and cost of capital. Design/methodology/approach – The paper uses empirical data to determine measures for the market's perception of earnings quality...

Purpose – The purpose of this paper is to investigate the impact of the Sarbanes‐Oxley Act (SOX) on market‐based measures of earnings quality and cost of capital. Design/methodology/approach – The paper uses empirical data to determine measures for the market's perception of earnings...

We investigate the relationship between firm strategy and the use of performance measures in executive compensation. Our analysis shows that there is an increased emphasis on sales in the determination of executive compensation for firms pursuing a cost leadership strategy, which seek to achieve...

Purpose – Research has shown that firms successfully pursuing either a cost leadership or a differentiation strategy are better able to gain competitive advantages over other firms and accordingly achieve superior performance. Thus, if firms actually do realize superior performance based on...