Using pooled time-series, cross-sectional data on 110 Australian companies over the period 1992-1998 an examination is undertaken whether the trademarked variant of residual income known as economic value-added (or EVA) is more highly associated with stock returns than conventional accounting-based measures. The accountingbased measures of internal and external performance include earnings, net...

Infectious bronchitis virus (IBV) is produced in vitro using specific pathogen free chicken embryos, primary chicken kidney cells (CKC) and/or tracheal organ culture (TOC). Regulatory authorities in Europe (EMEA) and in the United States (FDA) have encouraged biological manufactures to reduce or eliminate the use of live animals and/or products of animal origin in biological manufacturing proce...

We consider a setting in which insiders have information about income that outside shareholders do not, but property rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent with outsiders’ expectations based on publicly available information rather than true income, resulting in an observed income and payout process that adjust...

Classical single-factor comparable company valuation (CCV) like e.g. valuation using the price-earnings ratio is associated with several shortcomings. The two most important are the non-applicability of negative values in the basis of reference and the high requirements to the qualitative characteristics of comparable companies. This paper develops a multi-factor CCV model based on substance an...

We develop a rational expectations equilibrium model in which noise trading comes from discretionary liquidity traders. The equilibrium quantity of aggregate noise trading is endogenously determined by the population size of liquidity traders active in the financial market. By improving market liquidity, public information reduces the expected trading loss of liquidity traders and thus attracts...

This study documents a subtle and counter-intuitive interaction between operating cash flow (CFO) and accruals, and their association with future stock returns. While the two strategies should by construction capture similar anomalies, we find evidence in two large stock markets that they appear distinct, and that returns to these strategies are strongly negatively correlated. We show that the ...

We evaluate the interpretations that can be made when examining the association between accounting information and long-window stock returns. We show that the common practice of regressing long-window stock returns on earnings components, and inferring from their coefficients the appropriateness of the components for recognition, can lead to ambiguous and mis-specified results. The problem aris...

ABSTRACT Peer-to-peer (P2P) lending enables individuals and small companies to finance invest without the intermediation of financial institutions. However, this business model is also associated with high delinquency risk a lack monitoring control capabilities. This paper explores potential Internet Things (IoT), blockchain, smart contract technologies, Continuous Risk Monitoring Assessment (C...

We offer a way to test to what extent double-entry book-keeping is the vector of rationalization of merchant activity that was described by Weber, and explore alternative possible motivations. We move the focus away from the structure and theory of accounts into the daily practice of the agents themselves. We use the new, unique database of eighteenth-century merchant accounts developed in Fran...

We empirically examine whether firms increase financial leverage following mergers. Firms could increase financial leverage either because of an increase in debt capacity or because of unused debt capacity from pre-merger years. We find that financial leverage of combined firms increases significantly following mergers. A cross-sectional analysis shows that the change in financial leverage arou...