We develop an alternative factor model to determine the required rate of return by replacing the HML factor with a dividend-based alternative. Traditional factor models cannot be applied to portfolios diversified across the financial and nonfinancial sectors. We offer a resolution to this...

This article presents an empirical analysis of the financial behavior of Slovenian firms. It focuses on the goal of the firm, capital budgeting, capital structure, and dividend-payout decisions. Three theories of financial behavior, neoclassical, post-Keynesian, and employee governance, with...

We provide an overview of the role and current status of IFRS in the development of national accounting rules in Slovenia. The basic requirements of the financial reporting in Slovenia are set in the Companies Act, while the Slovenian accounting standards (SAS) provide a detailed authoritative...

We study the historical development of Slovenian Accounting Standards (SAS) and their association with accounting quality (AQ). We focus on private firms where the financial reporting process is characterised by low demand for high-quality reporting. We investigate three distinct editions of SAS...

We examine the extent to which economic incentives subject to political cost impact on accounting choice. We employ a setting with no agency factors to disguise economic incentives for earnings management. We find that profit firms manage earnings downward to reduce, but not entirely eliminate,...

Using 2.4m individual trade-credit transactions we developed credit rating models based on financial ratios and on debtor company-level and transaction-level payment history. The aim is to allow creditors to classify potential transactions into several categories according to the expected number...

Short-term liquidity of very small private companies (VSPCs) is important to creditors as any cash shortages result in opportunity costs due to delayed payments. We use a publicly available liquidity indicator for 19,627 Slovenian VSPCs as a special, but generalizable case of “credit record”...