Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27770
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dc.contributor.authorVelthuis, Louis Johnen_US
dc.date.accessioned2009-09-10T11:23:58Z-
dc.date.available2009-09-10T11:23:58Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/27770-
dc.description.abstractEarnings less riskfree Interest Charge (ERIC) is a new residual income concept forValue Based Management (VBM), which takes the true risk and time preferences ofshareholders into account. In this paper management based on ERIC is discussedfrom a theoretical and from a more practical point of view. Starting in a theoreticalworld it is shown that ERIC fulfills the specific basic theoretical requirements in allareas of VBM. In particular using ERIC in VBM ensures that planing, performancemeasurement, management incentives and decentralization are goal congruent withrespect to market value. In a second step market imperfections and diverging preferencesof managers, which lead to conflict of interest between individual shareholdersand between management and shareholders, are considered. Accounting principlesfor determining residual income as ERIC are established. It is shown that regardingthese accounting principles can substantially diminish conflict of interest and enhanceshareholder value.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseries|aWorking paper series / Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting |x127en_US
dc.subject.jelG31en_US
dc.subject.jelM41en_US
dc.subject.jelM52en_US
dc.subject.ddc330en_US
dc.subject.keywordvalue based managementen_US
dc.subject.keywordresidual incomeen_US
dc.subject.keywordaccrual accountingen_US
dc.subject.keywordincentivesen_US
dc.subject.keywordperformance measurementen_US
dc.subject.stwWertanalyseen_US
dc.subject.stwShareholder Valueen_US
dc.subject.stwErfolgsrechnungen_US
dc.subject.stwÖkonomischer Anreizen_US
dc.subject.stwBetriebliche Kennzahlen_US
dc.subject.stwTheorieen_US
dc.subject.stwperformance measurementen_US
dc.titleValue Based Management auf Basis von ERICen_US
dc.typeWorking Paperen_US
dc.identifier.ppn390575070en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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