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The 2008-2009 subprime mortgage crisis in the USA caused bankruptcies and closures of many financial institutions. Yet many CEOs of US financial institutions were awarded huge bonuses and pay packages despite the economic collapse, suggesting that their incomes were not in conjunction with those of the shareholders, indicating a serious agency problem. This issue raises the question as to whether stock option backdating, another example of an agency problem, was as prevalent as slack lending policies among these financial institutions. This paper aims to compare the relative magnitude of executive option backdating in financial and nonfinancial firms.

Using a sample of CEO stock option grants from 1995 to 2006, obtained from ExecuComp, the authors employ an event study around the grant dates of executive options. The authors compare the abnormal price movements between financial and nonfinancial firms.

The abnormal negative stock returns were found before the award dates for both groups of firms. The after-event abnormal returns of both groups of firms, however, show different trends. For nonfinancial firms, there is an immediate turnaround of the abnormal return movement right after the grants; that is, the price increases, indicating the occurrence of significant backdating events. For financial firms, however, there is no significant price rebound after the grant date. In fact, the price continued to decline throughout the after-event period.

The result shows that nonfinancial firms demonstrate significantly more option backdating behavior than financial firms.

The findings suggest that previous findings on prevalent backdating among all public listed firms are only partially correct. This paper shows that backdating behavior found in previous studies is indeed driven by nonfinancial firms. This unexpected finding contradicts the initial prediction of authors that option backdating may be more likely among financial firms.

Based on previous research, the authors recognize that generally the official grant dates of firms must have been set retroactively, as shown by Lie (2005). The findings, however, show that financial firms demonstrate only partial backdating behavior. This study opens a path for future research to further discover why financial firms exhibit less backdating behavior compared with nonfinancial firms, and if option backdating is not an issue for financial firms, why the share prices of these firms decline significantly prior to the grant date.

The paper focuses on how student entrepreneurs learn from the process of applying for low-threshold seed capital grants of about €2500

An in-depth inductive study was conducted on the seed capital grant initiative TrønderEnergi–Bidraget (TEB). The research design was based on the Zaltman metaphor elicitation technique (ZMET) to capture the interviewees' perceptions about TEB. From the interviews, 596 codes were identified and grouped into 54 categories. The results are illustrated in a consensus map.

TEB is an enabler of student venture creation processes through both the money awarded and activities fostering learning and development. Learning by doing is visible through two processes: 1) repeated writing of applications and 2) “forced” reflective thinking through the steps in the application process. The iterativeness of these processes due to repeated applications to the low threshold initiative is important for learning.

The authors recommend that university managers and policymakers offer seed funding to student entrepreneurs to ensure that the offering is a low threshold. A low threshold is decisive for generating a positive learning outcome from the application process. The seed funding initiatives should require students to put time and energy into all the integrated processes to make value out of the iterativeness of the processes.

This paper extends the discussion on the additionality of receiving grants by focusing on the process of applying for a grant. This research contributes to the student entrepreneurship literature by suggesting that the design of the application process and forced reflections are important for learning, as well as specifying the antecedents for student motivation for continued entrepreneurial activity in the application process.

Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way of using the law in specific circumstances, and shows the variations therein. Sums up that arbitration is much the better way to gok as it avoids delays and expenses, plus the vexation/frustration of normal litigation. Concludes that the US and Greek constitutions and common law tradition in England appear to allow involved parties to choose their own judge, who can thus be an arbitrator. Discusses e‐commerce and speculates on this for the future.

This paper aims to investigate the applicability of Grant’s framework in the current changing and dynamic environment.

In this paper, a critical review of Grant’s paper was conducted to identify the limitations and weaknesses of the framework, which prevent its effective application in the current digital age.

As a result, this paper presented a modified framework and four propositions to consider dynamic capabilities in the new turbulent environment and extend the relationships between a firm’s resources, capabilities, dynamic capabilities, competitive advantage and competitive strategy. Findings tied to this initiative will provide important contributions to research.

Rooted in resource-based view (RBV), the proposed framework puts forward a valid theoretical foundation on how to create a competitive advantage from a firm’s internal factors, including strategic resources, capabilities and dynamic capabilities. Furthermore, it contributes to RBV literature by considering dynamic capabilities, as the firms’ most crucial factors in the current dynamic digital market.

The purpose of this paper is to test for managerial opportunism, specifically the backdating of executive options, in Australia.

The paper analyses the return behaviour associated with a sample of 161 unscheduled options granted by Australian firms. Specifically, the authors test for differences between a subsample of grants that had late‐filed notices (and hence may be subject to backdating) versus those that had notices filed on‐time.

Consistent with backdating, it is found that these abnormal post‐grant returns persist for a sub‐sample of late‐filed grants but not for a sub‐sample of grants with same‐day filing. Furthermore – the authors find even stronger results for option grants made by firms with a history of late‐filing but for which no notice was filed with the Australian Securities Exchange. This paper is the first to demonstrate these effects in a setting subject to the IFRS requirement that the fair value (rather than the intrinsic value) of executive options be expensed.

This paper is the first to demonstrate these effects in Australia and further in a setting subject to the IFRS requirement that the fair value (rather than the intrinsic value) of executive options be expensed.

This article explores the implementation of infrastructure development projects funded by the Recovery Act’s Broadband Technology Opportunities Program (BTOP) in a southeastern state to provide high-quality Internet connectivity in un- or under-served areas to alleviate the conditions contributing to rural areas’ fiscal crises. This context affords a unique opportunity to view fiscal federalism’s operational dynamics in times of economic crisis and explore how various grant administrators in charge of similar federally funded public works projects define fiduciary responsibility. We find that these administrators comprehend “fiduciary responsibility“ narrowly in terms of complying with the accounting and reporting requirements of the federal grant. However, they have a broader and more nuanced understanding of their overall responsibility that includes working on behalf of their respective communities’ interests to meet local and regional needs.

This paper aims to examine the economic rationale for the COVID-19 wage subsidy and grants related to assets and the accounting for these wealth transfers under NZ IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The principal contribution is presenting an economics–accounting nexus for government assistance to firms during a pandemic and for the nation’s economic development.

This is a descriptive study that draws on the economic theory of regulation to understand the rationale for wealth transfers, then examining the accounting for the wealth transfers by analyzing the financial statements of NZX 50 companies that received the wage subsidy and SkyCity and Chorus that received substantial grants to develop and operate the New Zealand International Convention Centre and building a large part of New Zealand’s Ultra-Fast Broadband fiber optic network, respectively.

First, the 10 NZX 50 companies that received the government’s wage subsidy were justified to receive it from the legal, ethical and moral perspectives. However, some non-NZX 50 companies, while legally entitled to the wage subsidy, took advantage of the wealth transfer when they were profitable and paid dividends. This latter group of companies was not seen as behaving ethically and morally. Second, the government granted millions of dollars to SkyCity and Chorus for building critical infrastructures that are economically beneficial for the nation and that are unlikely to attract private investment, and these companies accounted for the grants related to assets in accordance with NZ IAS 20.

The financial statement impacts of the wage subsidy are based on a subset of NZX 50 companies with available information at the time of writing. However, they do not compromise the external validity of the findings because the wage subsidy applies to all businesses. Similarly, the manner in which SkyCity and Chorus accounted for the grants related to assets would apply equally to any entity that is a recipient of such a grant.

This paper presents an economic understanding for the existence of government grants and how the accounting mirrors the economic rationale for the “grants related to income” and “grants related to assets.” This paper demonstrates the importance of the economics–accounting nexus.

The purpose of this paper is to examine CEO wealth changes around seasoned equity offerings (SEOs) to explore the shareholder-manager incentive alignment in major corporate equity financing decisions.

The authors decompose CEO wealth into three major components: price effect, board compensation grant, and CEO’s own portfolio adjustment. The authors then compare SEO-event sample vs non-event samples; and evaluate the dynamic and long-run CEO wealth effect.

The authors find when market reacts negatively to SEO announcement leading to losses in CEO’s existing firm-related wealth, CEO gets additional grants to offset the losses. Although this appears to be a rent-seeking activity, the authors find that the additional grants are mainly in the form of stock options which would have no value if stock price failed to pick up in the future. In this sense, the additional grants align the interests between shareholders and managers. Consistent with this argument, the authors show that the additional grants motivate CEOs to promote the stock performance, benefiting themselves as well as shareholders in the long-run.

The study explicitly calculates the contribution of each wealth component to CEO total wealth effect. The results improve the understanding of CEO compensation policy change after major corporate event and contribute to the literature of the optimality explanation of prevailing compensation policy.

The main purpose of the study was to identify the key elements that characterize successful grant proposals and the relative importance of issues that constitute difficulties and concerns in preparing the proposals. The study aimed, in particular, to explore grantsmanship perceptions based on the experiences of researchers in Thailand who had, or had not yet, successfully been awarded domestic and/or international research funding.

Anonymous online questionnaires were distributed to researchers in biomedical and public health fields in Thai academic institutes. The online survey asked the anonymous participants to complete a questionnaire comprising both multiple-choice and open-ended questions.

About 19% of 300 respondents had received both domestic and international research grants, and 60% of domestic research grants. The top 5 issues in grant applications were: (1) choosing a topic that matched the grant opportunity, (2) feasibility of research design and methods, (3) suitable research design and methodology, (4) model and theoretical justification, and (5) ethical considerations. Significant differences in perceptions among researchers were found for the feasibility of research design and methods and proposing a reasonable and justifiable budget.

The information derived from this analysis reflected the perceptions of the researchers and may or may not correlate with those of grant agency reviewers. The results of this study may be insightful and instructive for other researchers and form the basis for training and mentoring researchers in informed and effective grantsmanship, particularly novice researchers with limited or no experience in grant proposal writing. This study particularly reflected grantsmanship perceptions among researchers in Thailand. It may also serve to exemplify lessons learned for researchers in other low-income and middle-income countries (LMIC) exposed to similar settings and situations applying for research grants.

The purpose of this paper is to provide evidence in support of incentive and retention-based explanations for backdating.

The authors use matching-firm techniques and the bivariate logistic model.

Backdating firms tend to be younger and faster growing – the characteristics of firms with growing demand for skilled labor. Further, rather than experiencing poor performance, backdating firms tend to outperform matching firms in both prior- and post-backdating years.

The results suggest that backdating reflects a firm's demand for valuable employees rather than strictly a manifestation of agency problems, as evidenced by previous study.