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From the buying club’s perspective, the transfer of a player can be interpreted as an investment from which the club expects uncertain future benefits. This paper aims to develop a decision-oriented approach for the valuation of football players that could theoretically help clubs determine the subjective value of investing in a player to assess its potential economic advantage.

We build on a semi-investment-theoretical risk-value model and elaborate an approach that can be applied in imperfect markets under uncertainty. Furthermore, we illustrate the valuation process with a numerical example based on fictitious data. Due to this explicitly intended decision support, our approach differs fundamentally from a large part of the literature, which is empirically based and attempts to explain observable figures through various influencing factors.

We propose a semi-investment-theoretical valuation approach that is based on a two-step model, namely, a first valuation at the club level and a final calculation to determine the decision value for an individual player. In contrast to the previous literature, we do not rely on an econometric framework that attempts to explain observable past variables but rather present a general, forward-looking decision model that can support managers in their investment decisions.

This approach is the first to show managers how to make an economically rational investment decision by determining the maximum payable price. Nevertheless, there is no normative requirement for the decision-maker. The club will obviously have to supplement the calculus with nonfinancial objectives. Overall, our paper can constitute a first step toward decision-oriented player valuation and for theoretical comparison with practical investment decisions in football clubs, which obviously take into account other specific sports team decisions.

This chapter discusses how the real options theory can be useful for understanding the adoption of human resources management (HRM) practices. The authors review how the real options theory has provided insights into the processes through which firms manage uncertainties involved in the adoption of HRM practices. The authors offer propositions for future HRM research from the real options perspective. The authors contend that analyzing HRM practice adoptions through the lens of real options theory can enhance our understanding of the mechanisms through which firms choose which HRM practices to adopt and how they adjust the timing, scale, and methods of investment in these practices. Specifically, the authors suggest that differences in information relevant to valuation of HRM options are the source of distinct choices of HRM options across firms. Finally, the authors propose advancing knowledge on HRM practice adoptions by using a portfolio of options approach, as well as considering factors like competitors, path dependence, and switching options.

This study aims to investigate the impact of consumer ethnocentrism on consumers' evaluation of blockchain-based traceability information. It also examined how the use of quick response (QR) codes for traceability affects consumers' evaluation of traceable food products.

An online choice experiment was conducted to determine consumers' evaluation of the blockchain-based traceability of Feta cheese with a quota sample of 715 Greek consumers. Pearson bivariate correlation and mean comparison were used to examine the relationship between consumer ethnocentrism and QR use behaviour. Random parameter logit models were employed to examine consumers’ valuation of the examined attributes and interaction terms.

The results show that ethnocentric consumers are willing to pay more for blockchain-based traceability information. Ethnocentric consumers tend to scan QR codes with traceability information. Spending more time reading traceability information embedded in QR codes does not lead to a higher willingness-to-pay (WTP) for traceable food products.

The findings suggest that patriotic marketing messages can draw consumers' attention to blockchain-based traceability information. The modest WTP for and low familiarity with blockchain-based traceability systems raise the need for educating consumers regarding the benefits of blockchain in traceability systems.

This is the first study to provide timely empirical evidence of a positive WTP for blockchain-based traceability information for a processed dairy product. This study is the first to attempt to distinguish the effects of the intention to scan QR codes and reading information embedded in QR codes on consumers’ valuation of food attributes.

Prior studies have found that managers adjust operational activities to tackle climate risk. However, the effects of climate risk on accounting practices are largely ignored in the literature. This paper investigates whether and how climate risk influences managers’ decision-making on the level of accounting conservatism and explains the results based on two competing channels: valuation demand and contracting demand.

Using firm level climate risk measures, we build a modified Basu (1997) model to conduct our econometric tests. In the baseline model, we use earnings before extraordinary items as the dependent variable, referred to as the earnings model. We control for different levels of fixed effect to identify the shocks of climate risk and mitigate potential concerns on endogeneity and bias in the model. A series of robustness tests provide supporting evidence for our baseline results and our explanation.

Using a sample of 35,832 firm-year observations on listed US firms over the period 2002 to 2019, we find that the perception of climate risk drives managers to choose the less conservative accounting policies. We conclude that the results are consistent with the valuation demand explanation but inconsistent with the contracting demand explanation.

The study provides additional evidence on how managers respond to climate risk by adjusting their corporate polices, specifically accounting policies. Our findings contradict the results of prior studies. We explain our results from a unique perspective. Overall, the study provides valuable insights for academics, investors, managers and policymakers.

Press reports have indicated that firms frequently underprice restricted stock and employee stock options. I test for underpricing of stock and options.

I examined a sample of 5,333 private firm stock and option issuances between 1985 and 2017. I tested for underpricing using two approaches: assuming investors have no special market-timing ability and assuming instead they have perfect market-timing ability.

I find evidence of widespread stock and option underpricing by private firms before they go public reflecting large discounts that exceed reasonable compensation for lack of marketability. Unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded, but the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect. Underpricing is still detected even when the actual DLOMs are tested against a benchmark that assumes investors have perfect market-timing ability.

Firms frequently underprice restricted stock and employee stock options. Firms tend to underprice stock options more frequently than restricted stock, but restricted stock tends to be priced at deeper discounts when recipients are assumed not to have any special market-timing ability.

Private firms issue restricted stock and options as incentive compensation. Lowballing the valuation transfers wealth from outside stockholders to employees/insiders. Wealth transfers take place through the issuance of equity claims to employees/insiders before firms go public. I found that more than a quarter of the DLOMs exceed the theoretical maximum by, on average, between 16% (median) and 20% (mean). This finding raises two questions worthy of investigation. First, to what extent do the frequency and magnitude of DLOMs above the theoretical maximum depend on whether a board of directors obtains an independent appraisal of a stock’s fair market value? Second, if DLOMs above the theoretical maximum are observed even when the stock is independently appraised, how do appraisers justify such large DLOMs?

The wealth transfers that take place through the issuance of equity claims to employees/insiders before firms go public benefit employees/insiders at the expense of outside shareholders.

My paper is the first to furnish evidence of widespread stock and option underpricing by private firms before they go public; demonstrate that the unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded and show that the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect.

This study aims to explore natural resources from a public sector accounting perspective, focusing on their definitions, classifications, recognition criteria and disclosure requirements provided by different standard-setters and regulators at both international and national levels.

By reviewing accounting frameworks for natural resources, this study extrapolates accounting dilemmas around the debate on natural resource accounting, using the dialogic accounting perspective as a theoretical framework.

Natural resources cannot be defined as a single category. Various categories have different characteristics, requiring different standards to recognize multiple orientations. This avoids monetary reductionism. Furthermore, uncertainty, both in existence and measurement, may disqualify some of these resources from being considered assets. Perhaps, concentrating on the flow of services derived from natural resources is better than focusing on their valuation. This may lead to a split-asset approach (flows and underlying assets) for certain resources. This study’s findings indicate that public-sector entities should consider preparing a separate non-financial report regarding the management of natural resources with the objective of maintaining inter-generational equity.

This study contributes to the debate on natural resources from an accounting and reporting perspective, highlighting the importance of holding public-sector entities accountable for the use of natural resources.

Public health measures implemented early in the COVID-19 pandemic brought the idea of essential work into the public discourse, as the public reflected upon what types of work are essential for society to function, who performs that work, and how the labour of essential workers is rewarded. This chapter focusses on the rewards associated with essential work. The authors develop an intersectional lens on work that was officially deemed essential in 2020 to highlight longstanding patterns of devaluation among essential workers, including those undergirded by systemic racism in employment and labour law. The authors use quantitative data from the CPS-MORG to examine earnings differences between essential and non-essential workers and investigate whether the essential worker wage gap changed from month to month in 2020. The authors find that patterns of valuation among essential workers cannot be explained by human capital or other standard labour market characteristics. Rather, intersectional wage inequalities in 2020 reflect historical patterns that are highly durable and did not abate in the first year of the global pandemic.

The aim of this article is to assess the macroeconomic consequences of some specific aspects of financialization (i.e. share buy-back) using a hybrid post-Keynesian model of growth and distribution based on Kaldorian and Kaleckian characteristics.

The study follows a post-Keynesian approach and deals with financialization issues by implementing several numerical simulations.

The numerical simulations reveal the negative real impacts of massive share repurchases on the rate of accumulation because they immediately siphon off revenues directly intended for investment projects. Moreover, the negative effect of share buy-backs is reinforced especially when firms' investment decisions are more sensitive to a variation in retained earnings. Next, this macro-model also reproduces several well-known figures of the Kaleckian tradition and the paradox of costs.

The present article can be considered as a starting point for further theoretical extensions and requires empirical validation.

The Kaldor-Kalecki macro-model could be useful for policymakers who are interested in containing some of the negative excesses of financialization.

The effects of integrated reporting quality (IRQ) have been debated in increasing empirical studies. Several IRQ measures, different theoretical approaches and multiple contexts have been adopted and investigated, leading to mixed results. By using the meta-analytic technique, this study aims to contribute to the accounting literature, reconciling the conflicting results on the effects of IRQ and providing objective conclusions to complement narrative literature reviews.

A sample of 45 empirical papers from 2013 to 2022, with 653 effect sizes, was used to assess the effects associated with IRQ. The papers were clustered into five groups (market reaction, financial performance, cost of capital, financial analysts’ properties and managerial decisions) based on the different consequences of IRQ investigated in the primary studies. A random-effects meta-regression model was used to explore all sources of heterogeneity together.

The meta-regression results confirm that IRQ positively influences firms’ market valuation and financial performance and hampers opportunistic managerial behaviour by improving corporate transparency, mitigating information asymmetry and encouraging accountability. Moreover, differences in the study characteristics affect the strength of the relationship object of interest.

Through meta-analysis, this study provides a broader overview of the effects of IRQ by enhancing the generalisability of the findings. The results also pave the way for additional evidence on the outcome variables affected by the quality of integrated disclosure.

Usually, a construction contract ends because the Parties have performed all their obligations thereunder but sometimes the need to terminate the contract arises before this. This need may have various reasons, e.g. one of the Parties goes into bankruptcy without the funds available for continuing the project, a substantial risk materialises to the detriment of the continuation of the project (e.g. substantial sub-surface issues, pollution etc.), other risks materialise, substantially increasing the cost of the project, or the Employer simply no longer has a need for the Works. The GC include provisions for the termination of the Contract before the Parties have fully performed all their obligations under the Contract; termination by the Employer is provided for in Clause 15 [Termination by Employer] and termination by the Contractor in Clause 16 [Suspension and Termination by Contractor]. Termination is an extreme remedy, regardless of who terminates the Contract. In all but a very few projects, a termination will cause both Parties to suffer substantial loss; not all such losses are recoverable from the defaulting Party. Thus, termination is a remedy that should be reserved for extreme cases. In addition, the right to terminate depends on an interpretation of the Contract provisions and the application of these provisions to the situation at hand, including whether a specific default is sufficiently severe to entitle the other Party to terminate. Because the consequences of a termination are serious, the applicable Laws usually require a serious (substantial) default before a Contract may be terminated. Furthermore, the procedures prescribed in the GC must be followed because a failure to comply with the relevant procedure may render a termination ineffective or invalid.