John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
The current financial crisis has caused many of us to question the motives and actions that drive the business world. Even the basic notion that firms should be run so as to maximize shareholder ...
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The current financial crisis has caused many of us to question the motives and actions that drive the business world. Even the basic notion that firms should be run so as to maximize shareholder value has come under increasing scrutiny. Simply put, the failures of some of our nation's most venerable financial institutions have called into question the very premise of value-based management (VBM). Moreover, by being paid out at a time when rank-and-file employees, suppliers, and other corporate stakeholders are suffering, excessive CEO compensation has produced public outrage. This book provides an up-to-date look at value-based management and finds that the underlying concept is as sound today as ever. One finding, however, is that, as initially practiced, VBM was often short sighted and thus needs to evolve if it is to continue to flourish. In particular, this book promotes a marriage of traditional VBM with the growing trend toward corporate social responsibility (CSR), a combination termed value(s)-based management. The case is made that CSR is much more than a feel-good concept; rather, it can make good business sense if practiced in a strategic manner. Ultimately, the book concludes that evidence supports the finding that, by embracing a program of corporate social responsibility, a firm can make the pie bigger, thus providing a win-win situation in which both the shareholders and other stakeholders benefit.Less
The current financial crisis has caused many of us to question the motives and actions that drive the business world. Even the basic notion that firms should be run so as to maximize shareholder value has come under increasing scrutiny. Simply put, the failures of some of our nation's most venerable financial institutions have called into question the very premise of value-based management (VBM). Moreover, by being paid out at a time when rank-and-file employees, suppliers, and other corporate stakeholders are suffering, excessive CEO compensation has produced public outrage. This book provides an up-to-date look at value-based management and finds that the underlying concept is as sound today as ever. One finding, however, is that, as initially practiced, VBM was often short sighted and thus needs to evolve if it is to continue to flourish. In particular, this book promotes a marriage of traditional VBM with the growing trend toward corporate social responsibility (CSR), a combination termed value(s)-based management. The case is made that CSR is much more than a feel-good concept; rather, it can make good business sense if practiced in a strategic manner. Ultimately, the book concludes that evidence supports the finding that, by embracing a program of corporate social responsibility, a firm can make the pie bigger, thus providing a win-win situation in which both the shareholders and other stakeholders benefit.
Jeffrey Kopstein
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199241149
- eISBN:
- 9780191598920
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241147.003.0009
- Subject:
- Political Science, Comparative Politics
Examines one effect of globalization on labour in the case of unified Germany: the rise of a new particularism. A number of scholars have started to speak of the new divide between eastern and ...
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Examines one effect of globalization on labour in the case of unified Germany: the rise of a new particularism. A number of scholars have started to speak of the new divide between eastern and western Germany in terms of ethnicity. As useful as this analogy is, however, it has the disadvantage of being just that—an analogy. Seen differently, the source of the new cultural divide in Germany is the conflict between two very different, historically shaped moral economies. Despite Stalinist misdevelopment, the economy of the communist East, through everyday labour practices, inculcated a set of egalitarian economic values. For political reasons, the unification strategy after 1991 did not challenge these values but accommodated them. Such a strategy thus guaranteed the persistence and even growth of regional identities in post‐unification Germany. The new particularism in other locales, therefore, may stem from the clash not only of ‘civilizations’ (Huntington), but also, rather more prosaically, from the conflict between dominant labour and leisure practices, of notions of what is properly commodified and what is best put outside of markets—practices that are being challenged by global markets, and the diffusion of tastes, values, and institutions.Less
Examines one effect of globalization on labour in the case of unified Germany: the rise of a new particularism. A number of scholars have started to speak of the new divide between eastern and western Germany in terms of ethnicity. As useful as this analogy is, however, it has the disadvantage of being just that—an analogy. Seen differently, the source of the new cultural divide in Germany is the conflict between two very different, historically shaped moral economies. Despite Stalinist misdevelopment, the economy of the communist East, through everyday labour practices, inculcated a set of egalitarian economic values. For political reasons, the unification strategy after 1991 did not challenge these values but accommodated them. Such a strategy thus guaranteed the persistence and even growth of regional identities in post‐unification Germany. The new particularism in other locales, therefore, may stem from the clash not only of ‘civilizations’ (Huntington), but also, rather more prosaically, from the conflict between dominant labour and leisure practices, of notions of what is properly commodified and what is best put outside of markets—practices that are being challenged by global markets, and the diffusion of tastes, values, and institutions.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the ...
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This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the development, status, and current policy issues of corporate financial reporting in major countries and the European Union. The globalization of financial markets has contributed to a growing consensus that national financial reporting standards should give way to a single, harmonized set of global reporting standards. This book takes a more practical approach and reaches a different conclusion: that global standards are unlikely to be achieved, and in any event, are not likely to remain unified in the face of continued changes in markets and financial practices. National accounting standards are likely to continue to be relevant for the foreseeable future, and for that reason, the book discusses the national systems and their origins in some detail. The authors also consider a range of other substantive reporting issues, notably the debate over the issue of “fair value” measurement of assets and liabilities, which the authors reject in favor of a system that marks to market only those assets with deep traded markets, coupled with additional disclosures, where relevant.Less
This book provides readers with reasonably concise descriptions of the state of global markets, the benefits and limitations of financial accounting and accounting/auditing standards, and the development, status, and current policy issues of corporate financial reporting in major countries and the European Union. The globalization of financial markets has contributed to a growing consensus that national financial reporting standards should give way to a single, harmonized set of global reporting standards. This book takes a more practical approach and reaches a different conclusion: that global standards are unlikely to be achieved, and in any event, are not likely to remain unified in the face of continued changes in markets and financial practices. National accounting standards are likely to continue to be relevant for the foreseeable future, and for that reason, the book discusses the national systems and their origins in some detail. The authors also consider a range of other substantive reporting issues, notably the debate over the issue of “fair value” measurement of assets and liabilities, which the authors reject in favor of a system that marks to market only those assets with deep traded markets, coupled with additional disclosures, where relevant.
R. Kerry Turner
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199248919
- eISBN:
- 9780191595950
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199248915.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Various aspects of the environmental values debate are first examined within the wider context of the sustainable economic development strategy and goal. Next, an expanded values classification is ...
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Various aspects of the environmental values debate are first examined within the wider context of the sustainable economic development strategy and goal. Next, an expanded values classification is set out in order to define the limits of the conventional environmental economics concept of total economic value (use plus non‐use values). Particular attention is paid to the definition and measurement of bequest and existence values, as well as to some recent findings in the newly emerging ‘ecological economics’ literature that have implications for resource systems valuation. The chapter concludes with some environmental conservation policy implications.Less
Various aspects of the environmental values debate are first examined within the wider context of the sustainable economic development strategy and goal. Next, an expanded values classification is set out in order to define the limits of the conventional environmental economics concept of total economic value (use plus non‐use values). Particular attention is paid to the definition and measurement of bequest and existence values, as well as to some recent findings in the newly emerging ‘ecological economics’ literature that have implications for resource systems valuation. The chapter concludes with some environmental conservation policy implications.
George J. Benston, Michael Bromwich, Robert E. Litan, and Alfred Wagenhofer
- Published in print:
- 2006
- Published Online:
- February 2006
- ISBN:
- 9780195305838
- eISBN:
- 9780199783342
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305833.003.0002
- Subject:
- Economics and Finance, Financial Economics
Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial ...
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Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial accounting statements and their limitations in providing this information, particularly measures of economic values. The essential features of the traditional market-transaction, cost-based accounting system, and the benefits and costs of fair-value accounting and of audits and attestations by independent public accountants (IPAs) are described and evaluated.Less
Investors, creditors, government officials, and others require information to evaluate companies’ economic position, performance, and prospects. This chapter examines the usefulness of financial accounting statements and their limitations in providing this information, particularly measures of economic values. The essential features of the traditional market-transaction, cost-based accounting system, and the benefits and costs of fair-value accounting and of audits and attestations by independent public accountants (IPAs) are described and evaluated.
Michael Bromwich
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199260621
- eISBN:
- 9780191601668
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199260621.003.0002
- Subject:
- Economics and Finance, Financial Economics
Some arguments are examined for incorporating into accounting reports further estimates or predictions of the future, and items that embed future cash flows. After an introduction (Section 1), ...
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Some arguments are examined for incorporating into accounting reports further estimates or predictions of the future, and items that embed future cash flows. After an introduction (Section 1), Section 2 outlines some of the common concerns of standard-setters with decision-orientated accounting (the essence of which is that accounting items should be measured using their economic values, which are founded on the cash flows they are expected to generate), and considers some of the general arguments for incorporating future-orientated accounting items into accounting reports. Looks at the strong movement toward ‘fair-value’ accounting in which asset and liability carrying values are based on the market prices that would result from arm’s length transactions between well-informed participants. In Section 3, as an example of this market value approach, some problems with suggestions for accounting for financial instruments (assets) are considered. Section 4 looks more briefly at the use of fair values with non-financial assets, and the final section gives a brief conclusion.Less
Some arguments are examined for incorporating into accounting reports further estimates or predictions of the future, and items that embed future cash flows. After an introduction (Section 1), Section 2 outlines some of the common concerns of standard-setters with decision-orientated accounting (the essence of which is that accounting items should be measured using their economic values, which are founded on the cash flows they are expected to generate), and considers some of the general arguments for incorporating future-orientated accounting items into accounting reports. Looks at the strong movement toward ‘fair-value’ accounting in which asset and liability carrying values are based on the market prices that would result from arm’s length transactions between well-informed participants. In Section 3, as an example of this market value approach, some problems with suggestions for accounting for financial instruments (assets) are considered. Section 4 looks more briefly at the use of fair values with non-financial assets, and the final section gives a brief conclusion.
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0005
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
Economic value added (EVA) is based on the concept of residual income. For the financial accountant, there is no cost for equity capital. However, for the financial economist, a cost is associated ...
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Economic value added (EVA) is based on the concept of residual income. For the financial accountant, there is no cost for equity capital. However, for the financial economist, a cost is associated with the use of equity capital—the opportunity cost of these funds. After considering this cost, we have the residual income. Still, EVA is more than residual income; it is also intended to eliminate the “distortions” created by the financial accountant that make no economic sense. The primary purpose of EVA is to provide an answer to the question, is management creating value for its shareholders? However, to think that EVA is simply about calculating a number—as informative as that might be—would miss an important point. In short, the intent is to use EVA as a behavioral tool to alter capital utilization and other incentives rather than as a tool of financial analysis.Less
Economic value added (EVA) is based on the concept of residual income. For the financial accountant, there is no cost for equity capital. However, for the financial economist, a cost is associated with the use of equity capital—the opportunity cost of these funds. After considering this cost, we have the residual income. Still, EVA is more than residual income; it is also intended to eliminate the “distortions” created by the financial accountant that make no economic sense. The primary purpose of EVA is to provide an answer to the question, is management creating value for its shareholders? However, to think that EVA is simply about calculating a number—as informative as that might be—would miss an important point. In short, the intent is to use EVA as a behavioral tool to alter capital utilization and other incentives rather than as a tool of financial analysis.
Viviana A. Zelizer
- Published in print:
- 2010
- Published Online:
- October 2017
- ISBN:
- 9780691139364
- eISBN:
- 9781400836253
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691139364.003.0005
- Subject:
- Sociology, Economic Sociology
This chapter presents a view of what is happening to children in our own times. It examines children's current economic value with a different slant. It lays out a framework for understanding two ...
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This chapter presents a view of what is happening to children in our own times. It examines children's current economic value with a different slant. It lays out a framework for understanding two other persistent questions: (1) When and why does thinking about children's productive activities make us uncomfortable? (2) In what ways do children generate immediate economic value but also contribute to their own financial, human, social, and cultural capital as well as that of their families and communities? Drawing mostly from household carework and immigrant enterprises, the chapter focuses on children's economic practices. It reveals the impressive variety of children's labor and illustrates the crucial contributions that children make to the maintenance of adult-run enterprises.Less
This chapter presents a view of what is happening to children in our own times. It examines children's current economic value with a different slant. It lays out a framework for understanding two other persistent questions: (1) When and why does thinking about children's productive activities make us uncomfortable? (2) In what ways do children generate immediate economic value but also contribute to their own financial, human, social, and cultural capital as well as that of their families and communities? Drawing mostly from household carework and immigrant enterprises, the chapter focuses on children's economic practices. It reveals the impressive variety of children's labor and illustrates the crucial contributions that children make to the maintenance of adult-run enterprises.
Philippe N. Tobler
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195373035
- eISBN:
- 9780199865543
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195373035.003.0022
- Subject:
- Neuroscience, Molecular and Cellular Systems, History of Neuroscience
This chapter reviews the extracellular studies of dopamine neurons in behaving animals. Topics covered include motor functions of dopamine neurons, reward functions of dopamine neurons, reward ...
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This chapter reviews the extracellular studies of dopamine neurons in behaving animals. Topics covered include motor functions of dopamine neurons, reward functions of dopamine neurons, reward learning functions of dopamine neurons, economic value functions of dopamine neurons, and attention and novelty functions of dopamine neurons.Less
This chapter reviews the extracellular studies of dopamine neurons in behaving animals. Topics covered include motor functions of dopamine neurons, reward functions of dopamine neurons, reward learning functions of dopamine neurons, economic value functions of dopamine neurons, and attention and novelty functions of dopamine neurons.
George Klosko
- Published in print:
- 2004
- Published Online:
- October 2011
- ISBN:
- 9780199270200
- eISBN:
- 9780191699467
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199270200.003.0006
- Subject:
- Political Science, Political Theory
This chapter explores attitudes towards distributive justice. It focuses on three main areas: preferred principles of distribution, assessments of how well society conforms to these, and attitudes ...
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This chapter explores attitudes towards distributive justice. It focuses on three main areas: preferred principles of distribution, assessments of how well society conforms to these, and attitudes towards possible governmental policies to bring society closer to preferred norms. It shows that there is general agreement throughout society on a certain principle of distribution. However, people differ on applications to particular circumstances. It is commonly said that in American society there is less agreement on economic values than on basic features of democracy.Less
This chapter explores attitudes towards distributive justice. It focuses on three main areas: preferred principles of distribution, assessments of how well society conforms to these, and attitudes towards possible governmental policies to bring society closer to preferred norms. It shows that there is general agreement throughout society on a certain principle of distribution. However, people differ on applications to particular circumstances. It is commonly said that in American society there is less agreement on economic values than on basic features of democracy.
JOANNA BOURKE
- Published in print:
- 1993
- Published Online:
- October 2011
- ISBN:
- 9780198203858
- eISBN:
- 9780191676024
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198203858.003.0001
- Subject:
- History, British and Irish Modern History, Social History
The market is a model of human relations. The price of commodities is an indicator of their relative worth. The ‘factors of production’, including human labour, receive their economic value in the ...
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The market is a model of human relations. The price of commodities is an indicator of their relative worth. The ‘factors of production’, including human labour, receive their economic value in the process of exchange. People choose on the basis of ‘rational’ analysis of economic conditions and prospects. In a growing economy, ‘rational’ behaviour is followed by increased well-being. The economic approach poses problems for the historian trying to understand the decisions that women in Ireland made in the period prior to World War I. Clearly, people make decisions based on notions of what they perceive to be ‘best’ for them. This book investigates the interaction of female well-being, agricultural production, and labour. A model of well-being needs to consider three aspects: material production and private consumption, non-economic factors, and distributional factors.Less
The market is a model of human relations. The price of commodities is an indicator of their relative worth. The ‘factors of production’, including human labour, receive their economic value in the process of exchange. People choose on the basis of ‘rational’ analysis of economic conditions and prospects. In a growing economy, ‘rational’ behaviour is followed by increased well-being. The economic approach poses problems for the historian trying to understand the decisions that women in Ireland made in the period prior to World War I. Clearly, people make decisions based on notions of what they perceive to be ‘best’ for them. This book investigates the interaction of female well-being, agricultural production, and labour. A model of well-being needs to consider three aspects: material production and private consumption, non-economic factors, and distributional factors.
Paul R. Ehrlich and Anne H. Ehrlich
- Published in print:
- 1997
- Published Online:
- October 2011
- ISBN:
- 9780198292203
- eISBN:
- 9780191684883
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198292203.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter states that one of the most vexing problems facing ecologists and economists today is how to measure the value of environmental goods whose destruction generates vast externalities. ...
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This chapter states that one of the most vexing problems facing ecologists and economists today is how to measure the value of environmental goods whose destruction generates vast externalities. Biodiversity, which is the variety of genetically distinct populations and species of plants, animals, and micro-organisms with which we share the earth, and the variety of ecosystems of which they are functioning parts, is a prime example of one of those goods. The chapter also discusses the ethical values of biodiversity, as they are often based on religious or quasi-religious feelings. The aesthetic values, direct economic values, and indirect economic values of biodiversity are also discussed in the chapter, as is the extinction epidemic and the economic value of biodiversity.Less
This chapter states that one of the most vexing problems facing ecologists and economists today is how to measure the value of environmental goods whose destruction generates vast externalities. Biodiversity, which is the variety of genetically distinct populations and species of plants, animals, and micro-organisms with which we share the earth, and the variety of ecosystems of which they are functioning parts, is a prime example of one of those goods. The chapter also discusses the ethical values of biodiversity, as they are often based on religious or quasi-religious feelings. The aesthetic values, direct economic values, and indirect economic values of biodiversity are also discussed in the chapter, as is the extinction epidemic and the economic value of biodiversity.
Patrick R. Mullen
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199746699
- eISBN:
- 9780199950270
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199746699.001.0001
- Subject:
- Literature, 20th-century Literature and Modernism, Film, Media, and Cultural Studies
Is Irish history at the dawn of the twenty-first century still, as Stephen Dedalus quipped, a nightmare? With the demise of the Celtic Tiger, the collapse of the housing bubble, and the sex abuse ...
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Is Irish history at the dawn of the twenty-first century still, as Stephen Dedalus quipped, a nightmare? With the demise of the Celtic Tiger, the collapse of the housing bubble, and the sex abuse scandals that have rocked the Catholic Church, Ireland is an island looking for a new story. This book argues that queer culture has a vital role to play in the creation of a reinvigorated national image for the Republic and for Northern Ireland. Looking back to the first wave of Irish modernism in the works of Oscar Wilde, John Millington Synge, Roger Casement, and James Joyce, the author reveals how these writers deployed queer aesthetics to shape inclusive forms of national affiliation as well as to sharpen anti-imperialist critiques. Turning to Ireland’s postmodernist boom in the works of Patrick McCabe, Neil Jordan, and Jamie O’Neill, the book shows that queer sensibilities and style remain key cultural resources for negotiating the political and economic realities of globalization. Irish queer aesthetics operate as both a mode of self-making and a novel form of social labor linked to modern transformations of capitalism. Situating his work in relation to Michel Foucault’s History of Sexuality, the author brings together the disparate fields of queer theory and theories of empire to promote Irish culture’s contributions to a more just world order. This book engages an array of sources and media to make an original contribution to Irish and modernist studies, the history of sexuality, and theories of economic and aesthetic value.Less
Is Irish history at the dawn of the twenty-first century still, as Stephen Dedalus quipped, a nightmare? With the demise of the Celtic Tiger, the collapse of the housing bubble, and the sex abuse scandals that have rocked the Catholic Church, Ireland is an island looking for a new story. This book argues that queer culture has a vital role to play in the creation of a reinvigorated national image for the Republic and for Northern Ireland. Looking back to the first wave of Irish modernism in the works of Oscar Wilde, John Millington Synge, Roger Casement, and James Joyce, the author reveals how these writers deployed queer aesthetics to shape inclusive forms of national affiliation as well as to sharpen anti-imperialist critiques. Turning to Ireland’s postmodernist boom in the works of Patrick McCabe, Neil Jordan, and Jamie O’Neill, the book shows that queer sensibilities and style remain key cultural resources for negotiating the political and economic realities of globalization. Irish queer aesthetics operate as both a mode of self-making and a novel form of social labor linked to modern transformations of capitalism. Situating his work in relation to Michel Foucault’s History of Sexuality, the author brings together the disparate fields of queer theory and theories of empire to promote Irish culture’s contributions to a more just world order. This book engages an array of sources and media to make an original contribution to Irish and modernist studies, the history of sexuality, and theories of economic and aesthetic value.
Alan Burton-Jones
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296225
- eISBN:
- 9780191685217
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296225.003.0011
- Subject:
- Business and Management, Knowledge Management, Strategy
This chapter looks into how the rise of knowledge capital affects globalized competition, the changes in employment arrangements, the restructuring of firms and its ownership, and the falling demand ...
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This chapter looks into how the rise of knowledge capital affects globalized competition, the changes in employment arrangements, the restructuring of firms and its ownership, and the falling demand for commodities and low knowledge-intensive products. Despite the upsurge of information in the media, society is still left eager for knowledge because of the lack of understanding of the notion of a knowledge-based economy and its implications on globalization, corporate restructuring, employment, and the like. Despite the efforts of government and corporate strategies to facilitate the understanding of this knowledge-based economy, this is hard to achieve without establishing the economic value of knowledge. This chapter presents the changes that have resulted from the shifting demands of firms for different skills and resources and explains the attempts that the government has made for these transitions.Less
This chapter looks into how the rise of knowledge capital affects globalized competition, the changes in employment arrangements, the restructuring of firms and its ownership, and the falling demand for commodities and low knowledge-intensive products. Despite the upsurge of information in the media, society is still left eager for knowledge because of the lack of understanding of the notion of a knowledge-based economy and its implications on globalization, corporate restructuring, employment, and the like. Despite the efforts of government and corporate strategies to facilitate the understanding of this knowledge-based economy, this is hard to achieve without establishing the economic value of knowledge. This chapter presents the changes that have resulted from the shifting demands of firms for different skills and resources and explains the attempts that the government has made for these transitions.
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0007
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of ...
More
Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of new investment opportunities. Nothing is wrong with single-period measures of performance per se (e.g., EVA); the problem lies in the use of such measures as indicators of value-creation potential for long-lived projects. In this situation it is best to simply use project NPV, which, furthermore, is completely consistent with EVA when the present value of all future project EVA is considered. The chapter also discusses a modification of EVA that corrects for the problems that arise in the use of traditionally defined EVA in project analysis. However, the fix comes at a high cost in terms of the required information inputs.Less
Single-period performance measures made popular by VBM vendors for the evaluation of a firm's ongoing operations can easily be misinterpreted and misused to evaluate period-by-period performance of new investment opportunities. Nothing is wrong with single-period measures of performance per se (e.g., EVA); the problem lies in the use of such measures as indicators of value-creation potential for long-lived projects. In this situation it is best to simply use project NPV, which, furthermore, is completely consistent with EVA when the present value of all future project EVA is considered. The chapter also discusses a modification of EVA that corrects for the problems that arise in the use of traditionally defined EVA in project analysis. However, the fix comes at a high cost in terms of the required information inputs.
John D. Martin, J. William Petty, and James S. Wallace
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780195340389
- eISBN:
- 9780199867257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195340389.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics, Financial Economics
This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and ...
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This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and rewards will get done. Consequently, the compensation program must measure employees’ activities that contribute toward wealth creation and reward those efforts. In essence, the compensation plan should pay employees to think and act like owners. Both the level of compensation and its form and composition are discussed. Many observed problems and potential remedies are presented. One characteristic that firms must be aware of is the public's perception that executive compensation has become unacceptably excessive. A complete VsBM program must consider the political implications of its behavior as these perceptions can and do effect a firm's reputation and ultimately its wealth-creating ability. One mechanism for addressing these perceptions is to consider fairness criteria when designing a compensation program.Less
This chapter presents a fundamental component of every firm's internal control system, its compensation program. The basic paradigm espoused by the proponents of VBM is that what a firm measures and rewards will get done. Consequently, the compensation program must measure employees’ activities that contribute toward wealth creation and reward those efforts. In essence, the compensation plan should pay employees to think and act like owners. Both the level of compensation and its form and composition are discussed. Many observed problems and potential remedies are presented. One characteristic that firms must be aware of is the public's perception that executive compensation has become unacceptably excessive. A complete VsBM program must consider the political implications of its behavior as these perceptions can and do effect a firm's reputation and ultimately its wealth-creating ability. One mechanism for addressing these perceptions is to consider fairness criteria when designing a compensation program.
Alan Burton-Jones
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198296225
- eISBN:
- 9780191685217
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198296225.003.0003
- Subject:
- Business and Management, Knowledge Management, Strategy
Because of the advent of this knowledge economy, there have been empirical evidences that suggest that there are also corresponding changes to the character of employment. Despite the trend veering ...
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Because of the advent of this knowledge economy, there have been empirical evidences that suggest that there are also corresponding changes to the character of employment. Despite the trend veering away from full-time employment, opportunities for employment are said to be improving. Although the OECD has reported that there is a 7% decline in unemployment, a shift is occurring towards non-standard work arrangements. With this, a large portion of the workforce is working under these arrangements. This chapter attempts to explain how the shift away from traditional employment practices can be attributed to changing workforce demographics, globalization, technological change, and the need from firms for ‘flexible employment’ resulting from the growing economic value of knowledge.Less
Because of the advent of this knowledge economy, there have been empirical evidences that suggest that there are also corresponding changes to the character of employment. Despite the trend veering away from full-time employment, opportunities for employment are said to be improving. Although the OECD has reported that there is a 7% decline in unemployment, a shift is occurring towards non-standard work arrangements. With this, a large portion of the workforce is working under these arrangements. This chapter attempts to explain how the shift away from traditional employment practices can be attributed to changing workforce demographics, globalization, technological change, and the need from firms for ‘flexible employment’ resulting from the growing economic value of knowledge.
André Orléan
- Published in print:
- 2014
- Published Online:
- January 2015
- ISBN:
- 9780262026970
- eISBN:
- 9780262323901
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026970.001.0001
- Subject:
- Economics and Finance, Financial Economics
With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, ...
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With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, however, economists continue to rely on the same methods and to proceed from the same underlying assumptions. André Orléan challenges the neoclassical paradigm in this book, with a new way of thinking about its most fundamental concept, economic value. Orléan argues that value is not bound up with labor, or utility, or any other property that preexists market exchange. Economic value, he contends, is a social force whose vast sphere of influence, amounting to a kind of empire, extends to every aspect of economic life. Markets are based on the identification of value with money, and exchange value can only be regarded as a social institution. Financial markets, for example, instead of defining a neutral, objective value for securities, act as a mechanism for arriving at a reference price that will be accepted by all investors. What economists must therefore study is the hold that value has over individuals and how it shapes their perceptions and behavior. The MIT Press edition of this book, originally published in French, has been substantially revised and enlarged, with an entirely new section discussing the recent financial crisis.Less
With the advent of the 2007-2008 financial crisis, the economics profession itself entered into a crisis of legitimacy from which it has yet to emerge. Despite the obviousness of its failures, however, economists continue to rely on the same methods and to proceed from the same underlying assumptions. André Orléan challenges the neoclassical paradigm in this book, with a new way of thinking about its most fundamental concept, economic value. Orléan argues that value is not bound up with labor, or utility, or any other property that preexists market exchange. Economic value, he contends, is a social force whose vast sphere of influence, amounting to a kind of empire, extends to every aspect of economic life. Markets are based on the identification of value with money, and exchange value can only be regarded as a social institution. Financial markets, for example, instead of defining a neutral, objective value for securities, act as a mechanism for arriving at a reference price that will be accepted by all investors. What economists must therefore study is the hold that value has over individuals and how it shapes their perceptions and behavior. The MIT Press edition of this book, originally published in French, has been substantially revised and enlarged, with an entirely new section discussing the recent financial crisis.
George A. Aragon
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780195305968
- eISBN:
- 9780199867844
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195305968.003.0003
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses the connection between ethics and valuation. Key to this connection is the ethical expectations held by counterparties in a particular exchange relationship. The chapter ...
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This chapter discusses the connection between ethics and valuation. Key to this connection is the ethical expectations held by counterparties in a particular exchange relationship. The chapter distinguishes between expropriation risk and ethical risk and argues that ethical risk affects economic value in exchange.Less
This chapter discusses the connection between ethics and valuation. Key to this connection is the ethical expectations held by counterparties in a particular exchange relationship. The chapter distinguishes between expropriation risk and ethical risk and argues that ethical risk affects economic value in exchange.
Neil Brodie
- Published in print:
- 2010
- Published Online:
- September 2011
- ISBN:
- 9780813034607
- eISBN:
- 9780813039510
- Item type:
- chapter
- Publisher:
- University Press of Florida
- DOI:
- 10.5744/florida/9780813034607.003.0021
- Subject:
- Archaeology, Archaeological Methodology and Techniques
Illegal and destructive trade of archaeological heritage is a well-documented phenomenon as described in this chapter. It leads to economic loss and cultural dislocation for the dispossessed ...
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Illegal and destructive trade of archaeological heritage is a well-documented phenomenon as described in this chapter. It leads to economic loss and cultural dislocation for the dispossessed communities and countries. Recent research has showed the economic value of archaeological heritage and has also emphasized stakeholders' growing interests in it. Cultural tourism also sometimes exploits the economic value of archaeological heritage. The chapter investigates the economic value of archaeological heritage and also makes some suggestions to utilize the value for improving the present protective regime.Less
Illegal and destructive trade of archaeological heritage is a well-documented phenomenon as described in this chapter. It leads to economic loss and cultural dislocation for the dispossessed communities and countries. Recent research has showed the economic value of archaeological heritage and has also emphasized stakeholders' growing interests in it. Cultural tourism also sometimes exploits the economic value of archaeological heritage. The chapter investigates the economic value of archaeological heritage and also makes some suggestions to utilize the value for improving the present protective regime.
