Corporate Performance and Foreign Activities of Multinational Firms

This paper examines the relationship between corporate performance and degree of internationalization in multinational firms. The management efficiency is found to be significantly related to the international business activities and firm characteristics. The correlation after the global financial crisis is also examined. Some factors those appear to affect the management performance have showed different influence after the global crisis. There is evidence that the short-term strategy changes during the economic downturn have diverse impact on the firm performance

Earnings smoothing and CEO cash bonus compensation: The role of mandatory derivatives disclosure policy

© 2018 Macmillan Publishers Ltd., part of Springer Nature. Motivated by intense controversy over mandatory derivative instruments disclosure required by the Statement of Financial Accounting Standard No. 133 (SFAS 133), this study is to examine whether the sensitivity of CEOs compensation to earnings smoothing changes following the adoption of SFAS 133. Moreover, the study investigates whether the sensitivity of CEOs compensation to earnings smoothing after the implementation of SFAS 133 varies with the level of market volatility. Using the correlation between the changes in discretionary accruals and the changes in pre-discretionary income as a measure of earnings smoothing and dollar value of a bonus earned by the CEOs during the year as a measure of CEOs compensation, the empirical evidence reveals that while earnings smoothing and CEOs compensation are positively related, the positive relation is stronger after the adoption of SFAS 133. The study also finds that the positive association between earnings smoothing and CEOs compensation after the adoption of SFAS 133 is larger when the market volatility is higher. This study provides direct evidence on the impact of the adoption of SFAS 133 on the sensitivity of CEO compensation to earnings smoothing and sheds light on current literature on the effects of accounting regulations, earnings smoothing, and compensation plan. Moreover, this study helps standard setters to better understand the trade-off between transparency and compensation plans

Corporate derivative use and the composition of CEO compensation

This paper analyzes whether the composition of a CEO's compensation package and SFAS 133, a regulation designed to increase transparency of derivative reporting, affect a firm's use of interest rate and currency derivatives to hedge risk. Using a panel of S&P500 firms during 1994-2000, we demonstrate the importance of properly aligning CEO incentives with derivative use. Results demonstrate that hedging is positively related to long-term CEO compensation, and negatively related to short-term CEO compensation as well as exercisable options compensation. We also show that changes in derivative reporting influence the relationship between CEO compensation and derivative use. Our paper thus highlight that CEO incentives and derivative reporting transparency are a significant factor in determining a firm's hedging use.Compensation Hedging

Análise da complexidade, estratégias e aprendizagem em projetos de melhoria contínua: estudos de caso em empresas brasileiras Analysis of complexity, strategies, and learning organization in continuous improvement processes: case studies in brazilian companies

O objetivo deste artigo é analisar projetos de melhoria contínua desenvolvidos por empresas industriais brasileiras com base na abordagem/programa da Manutenção Produtiva Total (Total Productive Maintenance, TPM) e da Qualidade Total (Total Quality Management, TQM). As variáveis estudadas nas análises dos projetos foram as seguintes: i) complexidade dos projetos; ii) seus objetivos específicos; iii) as estratégias competitivas relacionadas; iv) o aprendizado organizacional obtido; e v) as ferramentas e os principais pilares do TPM implementados. Selecionou-se para estudo projetos considerados de sucesso por suas empresas. Ao todo, analisaram-se 42 projetos de 12 diferentes empresas que representaram diversos segmentos industriais do Brasil. Os resultados indicaram correspondência entre a natureza do projeto, em termos da sua complexidade e estrutura organizacional, com a estratégia competitiva adotada.<br>This paper analyses the major goals and results of TPM and TQM processes in companies that adopt these approaches. The main variables considered in this study were: i) complexity of the projects developed by the companies; ii) projects´ specific goals iii) relationship between the projects and the company's strategy; iv) relationship between projects and continuous improvement and organizational learning; v) tools and TPM concepts that support the projects. A descriptive research was carried out using field research strategies. Forty-two processes adopted by 12 companies were analyzed in this study. The processes implemented were considered successful by the companies that adopt them and by outside specialists. The results indicated close relationship between the project`s nature (its complexity and team structure) and the company`s strategy, project goals and organizational learning

The joint decision to manage earnings through discretionary accruals and asset sales around insider trading: Taiwan evidence

Earnings Management, Insider Trading, Discretionary Accruals, Asset Sales, G30, M0,