This paper provides first evidence of negative peer disclosure (NPD), an emerging corporate strategy to publicize adverse news about industry peers on social media. Consistent with NPDs being implicit positive self-disclosures, disclosing firms experience a two-day abnormal return of 1.6-1.7% over the market and industry. Further exploring the benefits and costs of such disclosures, we find that NPD propensity increases with the degree of product market rivalry and technology proximity and that disclosing firms outperform non-disclosing peers in the product markets in the year following NPD. These results rationalize peer disclosure and extend the scope of the literature beyond self-disclosure.
{"title":"Negative Peer Disclosure","authors":"S. Cao, Vivian W. Fang, Lijun Lei","doi":"10.2139/ssrn.3413317","DOIUrl":"https://doi.org/10.2139/ssrn.3413317","url":null,"abstract":"This paper provides first evidence of negative peer disclosure (NPD), an emerging corporate strategy to publicize adverse news about industry peers on social media. Consistent with NPDs being implicit positive self-disclosures, disclosing firms experience a two-day abnormal return of 1.6-1.7% over the market and industry. Further exploring the benefits and costs of such disclosures, we find that NPD propensity increases with the degree of product market rivalry and technology proximity and that disclosing firms outperform non-disclosing peers in the product markets in the year following NPD. These results rationalize peer disclosure and extend the scope of the literature beyond self-disclosure.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116795252","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Professional service firms are common in some areas, in particular auditing and law. They are organized as partnerships, private corporations, or public corporations. This paper mainly discusses the first one of these three. When a partner leaves the partnership, her/his shares are redeemed. Two alternatives for redemption are at book value, the traditional alternative, or at fair market value. By means of a discounted dividends model that includes risk taking, it is shown that there may be an economic incentive for risk taking when the redemption value is equal to book value. There may also be an incentive for risk taking when the redemption value is equal to fair market value. However, the level of risk taking in the latter alternative is never higher than the level of risk taking in the former alternative.
{"title":"The Economic Incentive for Risk Taking in Professional Partnerships","authors":"L. Jennergren","doi":"10.2139/ssrn.3611668","DOIUrl":"https://doi.org/10.2139/ssrn.3611668","url":null,"abstract":"Professional service firms are common in some areas, in particular auditing and law. They are organized as partnerships, private corporations, or public corporations. This paper mainly discusses the first one of these three. When a partner leaves the partnership, her/his shares are redeemed. Two alternatives for redemption are at book value, the traditional alternative, or at fair market value. By means of a discounted dividends model that includes risk taking, it is shown that there may be an economic incentive for risk taking when the redemption value is equal to book value. There may also be an incentive for risk taking when the redemption value is equal to fair market value. However, the level of risk taking in the latter alternative is never higher than the level of risk taking in the former alternative.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123570158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We quantify the intended and unintended consequences to firms of increasing tax information disclosure to the IRS. Our empirical strategy leverages an exogenously staggered adoption of a redesigned tax form. We find that the redesign was successful at increasing compliance after 2011 among some firms, the intended consequence. At the same time, we find that firms changed their reporting in a way that decreased expected tax liability, an unintended consequence. We estimate that this unintended behavior reduced corporate receipts by $1.3 billion.
{"title":"Tax Enforcement and the Intended and Unintended Consequences of Information Disclosure","authors":"L. Konda, Elena S. Patel, N. Seegert","doi":"10.2139/ssrn.3592114","DOIUrl":"https://doi.org/10.2139/ssrn.3592114","url":null,"abstract":"We quantify the intended and unintended consequences to firms of increasing tax information disclosure to the IRS. Our empirical strategy leverages an exogenously staggered adoption of a redesigned tax form. We find that the redesign was successful at increasing compliance after 2011 among some firms, the intended consequence. At the same time, we find that firms changed their reporting in a way that decreased expected tax liability, an unintended consequence. We estimate that this unintended behavior reduced corporate receipts by $1.3 billion.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127302175","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We hypothesize that companies in the same product market avoid sharing the same audit partner when they are concerned about possible information spillovers. Consistent with our hypothesis, we find that product market rivals are less likely to share the same partner when they perceive that information spillovers are more costly. While concerns about information spillovers significantly reduce the likelihood of sharing the same audit partner, we find that they do not deter rival companies from sharing the same audit office. Lastly, when companies are unconcerned with information spillovers, we demonstrate that partner sharing can be beneficial resulting in lower audit fees and fewer accounting misstatements.
{"title":"Client Concerns About Information Spillovers from Sharing Audit Partners","authors":"Jun-Koo Kang, C. Lennox, V. Pandey","doi":"10.2139/ssrn.3567535","DOIUrl":"https://doi.org/10.2139/ssrn.3567535","url":null,"abstract":"We hypothesize that companies in the same product market avoid sharing the same audit partner when they are concerned about possible information spillovers. Consistent with our hypothesis, we find that product market rivals are less likely to share the same partner when they perceive that information spillovers are more costly. While concerns about information spillovers significantly reduce the likelihood of sharing the same audit partner, we find that they do not deter rival companies from sharing the same audit office. Lastly, when companies are unconcerned with information spillovers, we demonstrate that partner sharing can be beneficial resulting in lower audit fees and fewer accounting misstatements.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123505027","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-01-04DOI: 10.35940/ijrte.d8114.018520
S. Shatnawi, Monther Eldaia
Future of uncertainty and risks in firm businesses and country-based economics remains continuous processes that need to be managed effectively and efficiently. Risks taking is a routine activity in all firms. Enterprise Risk Management (ERM) has now become an ultimate concern and a robust risk management approach in all financial and non-financial industries and other sectors throughout the globe. Firms are adopting ERM as a holistic strategy by putting its core components in practice to effectively manage all risks to protect the organizations and stakeholder value. The process of putting ERM into practice is only effective and efficient through identifying the factors that influence its practice in order to improve the firm performance. As a result of this reason, various factors influencing ERM were examined by different investigators as an indirect factor or as a parameter. However, only a few scholars studied it as a major factor or main objective, despite the risks remain a major issue influencing the goals of enterprises in all firm types in both Jordan and Malaysia. In order to fully consolidate the influencing factors on ERM practices, a comparative review of the available literature in Jordan and Malaysia were carried out to excavate the key influencing factors for direct identification in order to improve the firm performance. The factors identified were categorized into three groups; the management-based, firm-based, and ERM-performance-measurement-based factors. Each group of factors was found to influence the success of ERM strategies and practices in both Jordan and Malaysia. Jordan (Middle-East) and Malaysia (South-East Asia) shared a common characteristic of ERM adoptions and practices with regard to firm composition and risk management. Both countries are now pacing up to meet up with ERM practice challenges. Although, ERM still is a relatively new concept in several parts of Middle-East and South-East Asia. Though, Malaysia proved to have more improved and established ERM success factors and researches as compared to Jordan. Additionally, Malaysia was found to have more appeared ERM terms in the Board of Bursa Malaysia (BBM) Guidelines as well as ERM practices under different sectors from 2008 to 2018 compared to Jordanian Amman Stock Exchange (ASE). Thus, it appears that Malaysia has more robust ERM research works, adoptions, practices, and compliance system in place compared to what is obtainable in Jordan. In conclusion, firm managers in Jordan and Malaysia are highly recommended to use these ERM factors identified as strategic and to improve ERM practices in their organizations.
{"title":"The Factors Influencing The Enterprise Risk Management Practices and Firm Performance in Jordan and Malaysia","authors":"S. Shatnawi, Monther Eldaia","doi":"10.35940/ijrte.d8114.018520","DOIUrl":"https://doi.org/10.35940/ijrte.d8114.018520","url":null,"abstract":"Future of uncertainty and risks in firm businesses and country-based economics remains continuous processes that need to be managed effectively and efficiently. Risks taking is a routine activity in all firms. Enterprise Risk Management (ERM) has now become an ultimate concern and a robust risk management approach in all financial and non-financial industries and other sectors throughout the globe. Firms are adopting ERM as a holistic strategy by putting its core components in practice to effectively manage all risks to protect the organizations and stakeholder value. The process of putting ERM into practice is only effective and efficient through identifying the factors that influence its practice in order to improve the firm performance. As a result of this reason, various factors influencing ERM were examined by different investigators as an indirect factor or as a parameter. However, only a few scholars studied it as a major factor or main objective, despite the risks remain a major issue influencing the goals of enterprises in all firm types in both Jordan and Malaysia. In order to fully consolidate the influencing factors on ERM practices, a comparative review of the available literature in Jordan and Malaysia were carried out to excavate the key influencing factors for direct identification in order to improve the firm performance. The factors identified were categorized into three groups; the management-based, firm-based, and ERM-performance-measurement-based factors. Each group of factors was found to influence the success of ERM strategies and practices in both Jordan and Malaysia. Jordan (Middle-East) and Malaysia (South-East Asia) shared a common characteristic of ERM adoptions and practices with regard to firm composition and risk management. Both countries are now pacing up to meet up with ERM practice challenges. Although, ERM still is a relatively new concept in several parts of Middle-East and South-East Asia. Though, Malaysia proved to have more improved and established ERM success factors and researches as compared to Jordan. Additionally, Malaysia was found to have more appeared ERM terms in the Board of Bursa Malaysia (BBM) Guidelines as well as ERM practices under different sectors from 2008 to 2018 compared to Jordanian Amman Stock Exchange (ASE). Thus, it appears that Malaysia has more robust ERM research works, adoptions, practices, and compliance system in place compared to what is obtainable in Jordan. In conclusion, firm managers in Jordan and Malaysia are highly recommended to use these ERM factors identified as strategic and to improve ERM practices in their organizations.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"240 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131605633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dr. Kemi C. Yekini, Kamil Omoteso, Emmanuel Adegbite
Despite the proliferation of studies on corporate social responsibility (CSR) communication, there is lack of consensus and a cardinal methodological base for research on the quality of CSR communication. Over the decades, studies on the subject have remained conflicting, unintegrated and sometimes overlapping. Drawing on semiotics – a linguistic-based theoretical and analytical tool, our paper explores an alternative perspective to evaluating the quality and reliability of Sustainability reports. Our two-phased analysis employed the Greimas Canonical Narrative Schema and the Semiotic Square of Veridiction to draw meanings from the Sustainability/CSR Reports of selected UK FTSE100 companies. Our paper advances CSR communication research by introducing a theoretical methodology which provides unique insights into how to evaluate the quality of CSR communication. In addition, we present a distinctive CSRR Quality model capable of guiding policy makers and firms in designing Sustainability/CSR reporting standards.
{"title":"CSR Communication Research: A Theoretical Cum-Methodological Perspective from Semiotics","authors":"Dr. Kemi C. Yekini, Kamil Omoteso, Emmanuel Adegbite","doi":"10.2139/ssrn.3512728","DOIUrl":"https://doi.org/10.2139/ssrn.3512728","url":null,"abstract":"Despite the proliferation of studies on corporate social responsibility (CSR) communication, there is lack of consensus and a cardinal methodological base for research on the quality of CSR communication. Over the decades, studies on the subject have remained conflicting, unintegrated and sometimes overlapping. Drawing on semiotics – a linguistic-based theoretical and analytical tool, our paper explores an alternative perspective to evaluating the quality and reliability of Sustainability reports. Our two-phased analysis employed the Greimas Canonical Narrative Schema and the Semiotic Square of Veridiction to draw meanings from the Sustainability/CSR Reports of selected UK FTSE100 companies. Our paper advances CSR communication research by introducing a theoretical methodology which provides unique insights into how to evaluate the quality of CSR communication. In addition, we present a distinctive CSRR Quality model capable of guiding policy makers and firms in designing Sustainability/CSR reporting standards.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"106 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126999575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I investigate the relation between business press attention and the incidence and properties of managers' voluntary disclosures. Specifically, I examine managers' disclosure responses to a bad news event: material lawsuits against the firm. I posit that managers' disclosure decisions are affected by press attention of this event, since press attention draws additional stakeholders' attention and increases information demand. Examining managers' voluntary Form 8-K Item 8.01 filings, I find that both anticipated and actual press coverage of the lawsuit event are positively associated with the likelihood and timeliness of these filings. Moreover, I find that press attention is associated with several textual characteristics of the filings, including length, tone, and complexity. My study extends a growing literature on the monitoring role of the press and suggests that managers' disclosures of bad news respond to anticipated and actual press scrutiny.
{"title":"Managers' Voluntary Disclosure Decisions and Business Press Attention","authors":"Jake Krupa","doi":"10.2139/ssrn.3489326","DOIUrl":"https://doi.org/10.2139/ssrn.3489326","url":null,"abstract":"I investigate the relation between business press attention and the incidence and properties of managers' voluntary disclosures. Specifically, I examine managers' disclosure responses to a bad news event: material lawsuits against the firm. I posit that managers' disclosure decisions are affected by press attention of this event, since press attention draws additional stakeholders' attention and increases information demand. Examining managers' voluntary Form 8-K Item 8.01 filings, I find that both anticipated and actual press coverage of the lawsuit event are positively associated with the likelihood and timeliness of these filings. Moreover, I find that press attention is associated with several textual characteristics of the filings, including length, tone, and complexity. My study extends a growing literature on the monitoring role of the press and suggests that managers' disclosures of bad news respond to anticipated and actual press scrutiny.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122258285","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Multiple investment targets naturally arise in portfolio management when investments are subject to performance benchmarks such as a stock/bond reference portfolio and absolute drawdown limits. Additional layers of investment targets like inflation outperformance or liability coverage ratios further complicate risk management and portfolio optimization.
This paper illustrates a comprehensive approach for managing a portfolio against multiple random or deterministic investment targets concurrently in a single period setting. The approach expands from the well-established body of academic and practical research on downside measures, and in particular the mean-below target (MBT) measure, also known as target shortfall (TS), first lower partial moment (LPM1), put premium (PP) risk measure or mean excess loss (MEL) and stop loss premium (SLP) in actuarial sciences. Despite embedding multiple targets the new approach reduces the mathematical complexity to a single dimension allowing to apply well-known results. Even though targets are co-dependent, the multi-target MBT measure allows for explicit decomposition into marginal single target MBT measures.
Besides exploring the properties of such risk measure the paper covers all aspects of performance measurement, cost of capital allocation as well as portfolio optimization with multiple targets. Here, the portfolio optimization of the multi target MBT measure remains of linear programming complexity. The resulting comprehensive portfolio management framework is appealing for its simplicity in application, implementation and communication.
{"title":"Multi Target Risk Measurement & Portfolio Optimization","authors":"Michael Rey","doi":"10.2139/ssrn.3516944","DOIUrl":"https://doi.org/10.2139/ssrn.3516944","url":null,"abstract":"Multiple investment targets naturally arise in portfolio management when investments are subject to performance benchmarks such as a stock/bond reference portfolio and absolute drawdown limits. Additional layers of investment targets like inflation outperformance or liability coverage ratios further complicate risk management and portfolio optimization. <br><br>This paper illustrates a comprehensive approach for managing a portfolio against multiple random or deterministic investment targets concurrently in a single period setting. The approach expands from the well-established body of academic and practical research on downside measures, and in particular the mean-below target (MBT) measure, also known as target shortfall (TS), first lower partial moment (LPM1), put premium (PP) risk measure or mean excess loss (MEL) and stop loss premium (SLP) in actuarial sciences. Despite embedding multiple targets the new approach reduces the mathematical complexity to a single dimension allowing to apply well-known results. Even though targets are co-dependent, the multi-target MBT measure allows for explicit decomposition into marginal single target MBT measures.<br><br>Besides exploring the properties of such risk measure the paper covers all aspects of performance measurement, cost of capital allocation as well as portfolio optimization with multiple targets. Here, the portfolio optimization of the multi target MBT measure remains of linear programming complexity. The resulting comprehensive portfolio management framework is appealing for its simplicity in application, implementation and communication.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129093772","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yingmei Cheng, Jongha Park, Spencer R. Pierce, Tianming Zhang
Practitioners and academics widely suspect that managers engage in “big bath” reporting behavior as a form of earnings management, but conclusive evidence of this behavior has been difficult to document due to the inherently endogenous nature of reporting the large nonrecurring charges necessary to engage in a big bath. We introduce a novel dataset of natural disasters to address this problem and argue that natural disasters provide an ideal exogenous shock to examine big baths. Consistent with opportunistic reporting, we find that, relative to both matched firms unaffected by a natural disaster and matched firms affected by the same natural disaster that do not report large, negative special items, big bath firms experience greater improvements in post-disaster earnings for multiple years and higher future stock returns. We also find that CEOs of bath firms receive relatively larger increases in bonus and cash compensation in the years following the natural disaster. Overall, our evidence suggests that managers take advantage of the occurrence of natural disasters by engaging in opportunistic big bath reporting behavior.
{"title":"Big Bath Accounting Following Natural Disasters","authors":"Yingmei Cheng, Jongha Park, Spencer R. Pierce, Tianming Zhang","doi":"10.2139/ssrn.3305478","DOIUrl":"https://doi.org/10.2139/ssrn.3305478","url":null,"abstract":"Practitioners and academics widely suspect that managers engage in “big bath” reporting behavior as a form of earnings management, but conclusive evidence of this behavior has been difficult to document due to the inherently endogenous nature of reporting the large nonrecurring charges necessary to engage in a big bath. We introduce a novel dataset of natural disasters to address this problem and argue that natural disasters provide an ideal exogenous shock to examine big baths. Consistent with opportunistic reporting, we find that, relative to both matched firms unaffected by a natural disaster and matched firms affected by the same natural disaster that do not report large, negative special items, big bath firms experience greater improvements in post-disaster earnings for multiple years and higher future stock returns. We also find that CEOs of bath firms receive relatively larger increases in bonus and cash compensation in the years following the natural disaster. Overall, our evidence suggests that managers take advantage of the occurrence of natural disasters by engaging in opportunistic big bath reporting behavior.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133893602","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the relevance of the British Academy Principles for Purposeful Business in the area of corporate measurement and performance. Because measurement and performance are critical for effective and sustainable management, the success of putting purpose into practice hinges on the ability to create metrics beyond solely financial standards and benchmarks. Drawing on expert interviews, case studies and document analysis, this paper analyses the current ecosystem of “non-financial” measures, discussing which frameworks and methodologies organisations can choose from and how these may differ in utility. It further explores whether and how metrics can be practically integrated with the traditional financial performance measurement, such as profits and capital investments. This inquiry provides an analysis of the remaining gap between existing non-financial measurement and accounting efforts and their full integration into organizations. The paper concludes with a discussion of three areas in which non-financial measurement is believed to be most impactful: investment practice, management decision making & incentivization, and corporate governance.
{"title":"How to Measure Performance in a Purposeful Company? Analysing the Status Quo","authors":"J. Stroehle, K. Soonawalla, M. Metzner","doi":"10.2139/ssrn.3504530","DOIUrl":"https://doi.org/10.2139/ssrn.3504530","url":null,"abstract":"This paper examines the relevance of the British Academy Principles for Purposeful Business in the area of corporate measurement and performance. Because measurement and performance are critical for effective and sustainable management, the success of putting purpose into practice hinges on the ability to create metrics beyond solely financial standards and benchmarks. Drawing on expert interviews, case studies and document analysis, this paper analyses the current ecosystem of “non-financial” measures, discussing which frameworks and methodologies organisations can choose from and how these may differ in utility. It further explores whether and how metrics can be practically integrated with the traditional financial performance measurement, such as profits and capital investments. This inquiry provides an analysis of the remaining gap between existing non-financial measurement and accounting efforts and their full integration into organizations. The paper concludes with a discussion of three areas in which non-financial measurement is believed to be most impactful: investment practice, management decision making & incentivization, and corporate governance.","PeriodicalId":181062,"journal":{"name":"Corporate Governance: Disclosure","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131732464","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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