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Our chapter raises serious questions about the long-term efficiency of stock prices in relation to the realized returns of the underlying corporate real assets. In our large-scale calculations that cover horizons of 10, 20, 30, 40, and 50 years, returns on corporate real assets suffer a long-term decline, and have been below the yields of 10-year Treasury bonds since 1973. Real assets that received more external financing from capital markets and institutions actually report even lower realized long-term returns. The decline in realized returns cannot be attributed to declining risks as the volatilities of realized returns have been increasing over time. These surprising results may stimulate fresh debate on the roles and long-term performance of capital markets and institutions.

Answering to calls for further contextualizing global leadership, this study investigates power dynamics and cultural identities in global leadership in an African context. We took a grounded theory approach to investigate how a specific cultural context shapes assets and liabilities of global leaders. Drawing on our data comprising semi-structured interviews of managers of multinational enterprises operating in Ghana, we identified key assets and liabilities for being local or foreign in one’s global leadership role. Furthermore, we theorize four specific styles of leadership leveraging: identity leveraging, power leveraging, juxtapositional leveraging, and temporal leveraging. Finally, we integrated the above-mentioned elements and proposed a framework of contextualized assets and liabilities which illustrates how specific cultural context affects the assets and liabilities of localness and foreignness for global leaders, and how these assets and liabilities constitute the four styles of leveraging in such context. Implications of our findings for research and practice are discussed.

This study aims to use analogical reasoning to draw a conceptual link between liabilities in International Business (IB) and export barriers.

Following a review of 130 articles on export barriers, the study develops and applies a “liabilities” metonymy to connect the source construct (liabilities in the IB) and target subject (export barriers).

Liabilities in the IB map to export barriers, and the concepts of liability of foreignness, liability of outsidership, liability of newness and liability of smallness can substitute export barriers.

Adoption of metonymy creates new opportunities for enhancing theory development while offering alternative perspectives regarding coping mechanisms for overcoming export barriers.

This, to the author’s best knowledge, is the first study in the IB to theorize based on metonymy.

This paper is an addition to the current debate on how to measure and recognise intellectual assets and liabilities. A conceptual approach has been proposed so that intellectual assets and liabilities can be recognised in the financial statements using market value as a reference point acknowledging that intellectual assets and liability items cannot be measured accurately to recognise them individually. It was constructed using the common ground between financial reporting and intellectual assets and liability management. It has used an intellectual assets definition, an intellectual assets indicator at an organizational level, the Australian conceptual framework in accounting and recently published and revised accounting standards in Australia as tools for its construction.

GASB Statement No. 45 addresses how governmental units account for employees' other post-employment benefits (OPEB), requiring government employers to replace OPEB reporting on a pay-as-you-go basis with an accounting of the cost of current and future benefits. This requirement and the resulting OPEB liability may prompt government employers to reconsider key questions regarding their OPEB provision. The size of the OPEB liability depends on both the benefit promises made to employees and the assets to fund these promises. We propose a typology that defines four approaches for governments to respond to GASB 45 and their OPEB liabilities. These approaches represent different combinations of strategies involving OPEB promises and assets. We illustrate these strategies and responses using selected counties and nine mid-Atlantic cities.

The purpose of this paper is to: discuss how reporting under a human resource liability paradigm fits into the traditional accounting framework of contingent liabilities; examine the financial effects of such reporting on market valuation and internal planning; and explore measurement of human resource liabilities.

From reviews of financial effects of human resource liability reporting the paper logically extends those results to support the proposed paradigm.

Accountants already recognize some liabilities resulting from future expenses for past labor. A fuller treatment of expected costs from human resource polices would provide external and internal financial analyst with different and useful information. Recognizing these future expenses will depress asset turnover and return on asset calculations, while increasing estimates of risk such as higher debt ratio, lower cash flow coverage and higher degrees of operating leverage.

The paper provides support for the feasibility and need to adopt a human resource liability paradigm for valuing, reporting and managing human resources.

There are seven categories of liabilities all new managerial appointees must overcome, regardless of whether they are a new CEO or a new department manager. This paper aims to identify them and offer an action plan for rapidly overcoming them.

These liabilities are the preconditions that act as obstacles to effective leadership and strategy implementation. Junior and middle managers in the banking and finance sector were surveyed about their managers' ability to lead them and what makes them recognize and follow a leader.

Because the liabilities are interdependent, their effects can be additive and the relationships not always directly visible.

The bottom line message: awareness and a plan for rapid plan are essential to resolution of the seven interdependent liabilities.

To overcome the seven liabilities, leaders can adopt a set of key practices shown in this paper.

Markets-as-networks (MAN) theorists contend, at least tacitly, the significance of business relationships to the firm – that is, business relationships contribute somewhat to corporate survival or growth. One does not deny the existence of significant business relationships but sustain, in contrast to the consensus within the MAN theory, that relationship significance should not be a self-evident assumption. For significance cannot be a taken-for-granted property of each and every one of the firm's business relationships. The authors adopt explicitly a critical realist meta-theoretical position in this conceptual paper and claim that relationship significance is an event of the business world, whose causes remain yet largely unidentified. Where the powers and liabilities of business relationships (i.e., relationship functions and dysfunctions) are put to work, inevitably under certain contingencies (namely the surrounding networks and markets), relationship effects ensue for the firm (often benefits in excess of sacrifices, i.e., relationship value) and as a consequence relationship significance is likely to be brought about. In addition, relationship significance can result from the dual impact that business relationships may have on the structure and powers and liabilities of the firm, that is, on corporate nature and scope, respectively.

We examine the relationship that exists among bond ratings, bond yields, and various estimates of a firm's contingent environmental remediation liability using a sample of new bond issues. Our results indicate that the largest external EPA-based estimates of the firm's environmental obligations are significantly associated with a firm's bond rating, providing relevant incremental information beyond that supplied by the environmental accruals presented in the financial statements. Furthermore, while the accrued environmental liability is shown to have a direct association with the bond yield, the external EPA-based estimates provide an indirect relationship with the bond yield through their influence on the bond rating. These results contribute to the extant literature by empirically clarifying the role of various environmental liability estimates in establishing a firm's bond rating and further indicating their connection with the pricing of corporate debt.

An intractable effect of revenue and expense recognition based on tax regulation and accounting rules is unresolved and may be manageable only by reducing the value of deferred taxes. Therefore, in this study, the authors examined the relationship between the International Accounting Standard 12 (IAS 12) and deferred income taxes associated with tax and accounting rules.

The authors used a large sample of balanced data from 144 firms across 1992–2019. To mitigate the problem of superfluous results, the authors used the same number of firms and years for pre- and post-IAS 12 periods. The authors employed robust econometric estimations to establish the impact of IAS 12 on deferred tax.

The regression results show that deferred tax assets decreased significantly, whereas deferred tax liabilities increased significantly, in the post-IAS 12 period. These contrasting results imply that IAS 12 implementation has increased conservatism and prudence in financial reporting. However, the authors find that the increase in deferred tax assets post-IAS 12 is value destructive, suggesting that its implementation has unintended consequences. The results are robust to alternative measurements and econometric identification strategies.

While prior studies have explored topics such as deferred tax measurement and the impact of income and expense recognition, the authors specifically analyzed how IAS 12 affects deferred taxes and their effect on the market valuation. The authors find that certain accounting standards may not be relevant to the capital market.