FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W2022805737> ?p ?o ?g. }

• W2022805737 endingPage "209" @default.
• W2022805737 startingPage "209" @default.
• W2022805737 abstract "Dissatisfaction with traditional accounting-based performance measures has spawned a number of alternatives, of which Economic Value Added (EVA) is currently the most prominent. How can we tell which performance measures best capture managerial contributions to value? There is currently a heated debate among practitioners about whether the new performance measures have a higher correlation with stock values and their returns than do traditional accounting earnings. Academic researchers have relied instead on the variance of performance measures to gauge their relative accuracy. To formally address the above debate, we use a relatively standard principal-agent model in which contracts can be based on any two accounting-based performance measures plus the stock price. Rather than model detailed differences between EVA and traditional measures such as earnings, we focus on the problem that while the variability of each measure is observable, its exact information (signal) content is not. The model provides a formal method for researchers to ascertain the relative value of alternative accounting-based measures based on two distinct uses of the stock price. First, as is well known, prices provide a noisy measure of managerial value-added. In our model, stock prices also can reveal the signal content of alternative accounting-based performance measures. We then show how to combine stock prices, earnings, and EVA to produce an optimally weighted compensation scheme. We find that the simple correlation between EVA or earnings and stock returns is a reasonably reliable guide to its value as an incentive contracting tool. That is, a firm could reasonably gauge the merits of adding a measure like EVA by examining its correlation with the firm's stock price. This is not because stock returns are themselves an ideal performance measure, rather it is because correlation places appropriate weights on both the signal and noise components of alternative measures. We then calibrate the theoretical improvement in incentive contracts from optimally using EVA in addition to accounting earnings. Specifically, we empirically estimate the value-added of EVA by firm and industry. These estimates are positive and significant in predicting which firms have actually adopted EVA as an internal performance measure." @default.
• W2022805737 created "2016-06-24" @default.
• W2022805737 creator A5000461260 @default.
• W2022805737 creator A5075426807 @default.
• W2022805737 date "2000-01-01" @default.
• W2022805737 modified "2023-09-24" @default.
• W2022805737 title "EVA versus Earnings: Does It Matter Which Is More Highly Correlated with Stock Returns?" @default.
• W2022805737 cites W1497262011 @default.
• W2022805737 cites W1550330740 @default.
• W2022805737 cites W1551794060 @default.
• W2022805737 cites W1983044690 @default.
• W2022805737 cites W2029882620 @default.
• W2022805737 cites W2034252958 @default.
• W2022805737 cites W2079286316 @default.
• W2022805737 cites W2163421828 @default.
• W2022805737 cites W2320315155 @default.
• W2022805737 cites W3122000667 @default.
• W2022805737 cites W3122695070 @default.
• W2022805737 cites W3124355031 @default.
• W2022805737 cites W600614689 @default.
• W2022805737 doi "https://doi.org/10.2307/2672916" @default.
• W2022805737 hasPublicationYear "2000" @default.
• W2022805737 type Work @default.
• W2022805737 sameAs 2022805737 @default.
• W2022805737 citedByCount "105" @default.
• W2022805737 countsByYear W20228057372012 @default.
• W2022805737 countsByYear W20228057372013 @default.
• W2022805737 countsByYear W20228057372014 @default.
• W2022805737 countsByYear W20228057372015 @default.
• W2022805737 countsByYear W20228057372016 @default.
• W2022805737 countsByYear W20228057372017 @default.
• W2022805737 countsByYear W20228057372018 @default.
• W2022805737 countsByYear W20228057372019 @default.
• W2022805737 countsByYear W20228057372021 @default.
• W2022805737 countsByYear W20228057372022 @default.
• W2022805737 countsByYear W20228057372023 @default.
• W2022805737 crossrefType "journal-article" @default.
• W2022805737 hasAuthorship W2022805737A5000461260 @default.
• W2022805737 hasAuthorship W2022805737A5075426807 @default.
• W2022805737 hasBestOaLocation W20228057372 @default.
• W2022805737 hasConcept C10138342 @default.
• W2022805737 hasConcept C106159729 @default.
• W2022805737 hasConcept C144133560 @default.
• W2022805737 hasConcept C149782125 @default.
• W2022805737 hasConcept C162324750 @default.
• W2022805737 hasConcept C191897082 @default.
• W2022805737 hasConcept C192562407 @default.
• W2022805737 hasConcept C204036174 @default.
• W2022805737 hasConcept C2781426361 @default.
• W2022805737 hasConceptScore W2022805737C10138342 @default.
• W2022805737 hasConceptScore W2022805737C106159729 @default.
• W2022805737 hasConceptScore W2022805737C144133560 @default.
• W2022805737 hasConceptScore W2022805737C149782125 @default.
• W2022805737 hasConceptScore W2022805737C162324750 @default.
• W2022805737 hasConceptScore W2022805737C191897082 @default.
• W2022805737 hasConceptScore W2022805737C192562407 @default.
• W2022805737 hasConceptScore W2022805737C204036174 @default.
• W2022805737 hasConceptScore W2022805737C2781426361 @default.
• W2022805737 hasLocation W20228057371 @default.
• W2022805737 hasLocation W20228057372 @default.
• W2022805737 hasOpenAccess W2022805737 @default.
• W2022805737 hasPrimaryLocation W20228057371 @default.
• W2022805737 hasRelatedWork W1540726399 @default.
• W2022805737 hasRelatedWork W1971561509 @default.
• W2022805737 hasRelatedWork W2030617584 @default.
• W2022805737 hasRelatedWork W2032332170 @default.
• W2022805737 hasRelatedWork W2068098150 @default.
• W2022805737 hasRelatedWork W2070339686 @default.
• W2022805737 hasRelatedWork W2091391576 @default.
• W2022805737 hasRelatedWork W2112828923 @default.
• W2022805737 hasRelatedWork W2186434883 @default.
• W2022805737 hasRelatedWork W2053699725 @default.
• W2022805737 hasVolume "38" @default.
• W2022805737 isParatext "false" @default.
• W2022805737 isRetracted "false" @default.
• W2022805737 magId "2022805737" @default.
• W2022805737 workType "article" @default.