A global look at environmental disclosures
Do laws or the marketplace motivate firms to release information about their behavior?
Is cash really king in valuations, or do earnings trump all?
Forecast U.S. earnings are the closest proxy for share price when compared with actual financial statement variables. But do earnings beat forecast cash flows and dividends in an international sample?
Earnings, cash flows and complementarity
The no-arbitrage principle implies that expected real cash flows — not earnings estimates — should determine asset prices. So why do earnings announcements move markets, while cash flow news is all but ignored?
Shareholder value accounting
Stephen Penman explains how shareholder value accounting, an approach designed to accurately track the value of shareholders’ assets and liabilities, differs from traditional accounting methods.
Customer lifetime value
Donald Lehmann discusses Managing Customers as Investments, a new book in which he and coauthor Sunil Gupta explain how to calculate and apply customer lifetime value.
Bringing rigor to financial forecasting
By adding quantitative discipline to their number crunching, financial analysts may avoid the psychological biases that can lead to judgment errors.
Disclosing risk
Risk disclosure decisions can have a direct impact on a firm’s cost of capital. When is it in managers’ best interests to voluntarily reveal information about firm-specific risk?
Does shareholder voting curb CEO pay?
Giving shareholders a say may not have as much impact on executive compensation as investors would like.
Using fair-value accounting, fairly
Doron Nissim and Stephen Penman explain why a new market-based approach to valuation may not be the best one for all industries.