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The purpose of this paper is to outline the link between value creation, performance measurement and goodwill accounting according to the International Financial Reporting Standards (IFRS) and United States Generally Accepted Accounting Principles (US‐GAAP). Since economic goodwill is identical to the present value of future residual income, the paper examines how accounting information gathered for impairment testing of goodwill according to International Accounting Standard (IAS) 36 and Financial Accounting Standard (FAS) 142 can be used for internal control purposes.

The paper adopts common assumptions in the literature of residual income‐based valuation and analytically derives a periodic performance measure of both value creation and its realization based on information available from impairment testing.

This paper demonstrates that information required by IFRS and US‐GAAP to evaluate a firm's goodwill can be used to design a performance measurement system which provides information about both value creation and realization of value.

From a practical perspective, the paper shows that appropriate adjustments of data used in impairment testing result in information which ideally fits the requirements of an optimal performance measurement system.

The paper presents a performance measure which provides information about the actual creation of value as well as its realization in a period and is superior to traditional residual income‐based performance measures.

The purpose of this paper is to compare relative levels of rental affordability across the English housing association sector.

A total of two methods, rent‐to‐income ratio and residual income standards (poverty‐line and budget standard), are used to maximise their strengths and complement their weaknesses in measuring rental affordability.

The rent‐to‐income ratio analysis identified that housing association rents were generally affordable. However, the residual income analyses using two different minimum acceptable standards suggested some scepticism in this regard. In particular, both analyses confirmed the affordability problem in London where nearly half of existing housing association tenants had disposable household incomes that were well below the poverty‐line as well as the largest rent‐to‐income ratio. Both analyses also confirmed that lone parents were more likely than average households to have an affordability problem.

The main limitations of this study are the small sample size of existing housing association tenants and different definitions of incomes, and subsequently different residual income measures for existing and new tenants. However, this study demonstrates that when examining the affordability of housing for the poorest households, multiple overlapping measures of affordability are likely to be more reliable than any single measure.

The paper is an empirical attempt to use a combination of two affordability measures to examine the affordability problem of social tenants in the English housing association sector. It is also unusual in the scientific literature to use different data sources to obtain household incomes for different types of housing association tenants.

The United Nation's resolution proclaiming 1981 the International Year of Disabled People set out principal aims for the “Year”: to stimulate awareness of the needs, abilities and aspirations of the disabled; to encourage the participation, equality and integration of disabled people in society; to help the prevention of disability and to make more positive attitudes towards disabled people. The disabled, however, should have taken heed of what had happened to children since their International Year, 1979, and should, perhaps, have decided against the institutionalising and internationalising of their plight. In the UK, the Year of the Child was followed by savage cuts in the field of education, children's homes, pre‐school and nursery care, and child benefits were not up‐rated in line with the cost of living. Similar things have been happening to disabled people: benefits have not been increased to keep pace with inflation, invalidity pension has become taxable, budgets for aids and appliances have been severed, in some areas the home help service has been cut and elsewhere its cost has increased beyond the means of many of the disabled and the recommendations of the Royal Commission on Civil Liability and Compensation for Personal Injury (the Pearson Commission) have been abandoned. Even the new supplementary benefit scheme as it applies to the disabled fails to provide a sufficient income as of right and indeed some disabled people are worse off financially under the new regulation than the old. Notwithstanding the fact that public expenditure cuts have been made in all sectors, not just those affecting the disabled, there is no doubt that while the launching of an International Year of the Disabled may have been a fine, well‐meaning gesture, in real terms little has been done to improve the financial position of disabled people in the UK.

This paper aims to offer an extensive empirical case study analysis by investigating housing affordability in Turkey as a whole, and in Istanbul, Ankara and Izmir over the period of 2006 and 2017 and its sub-periods.

This paper develops a theoretically informed model to assess affordability using complementary methodologies in quantitative analysis. This study seeks to help outline the nature of the problem in aggregate level and in the cities; it also seeks to offer lessons about how to address measurement and modelling challenges in emergent market contexts by constructing aggregate-/city-level housing cost-to-income (HCI) ratio, adjusted HCI (AHCI) ratio, housing affordability index (HAI) and effective HAI sensitive to multiple calculation methodologies and alternative data set involving income distribution and poverty tranches.

HCI, AHCI, HAI and EHAI models generally suggest the parallel results: housing is not affordable in Turkey and in Istanbul, Ankara and Izmir except for the highest income groups. The evidence implies that besides macroeconomic instabilities, distorted interest rates and short average mortgage maturity, poverty and unequal income/wealth distributions are the main reasons of the Turkish housing affordability crisis specifically heightened in metropolitan areas such as in Istanbul.

The evidence provides an insight on housing affordability problems in Turkey. However, small sample size and short observation period create a limit for generalisation of the findings. Further analysis would be required to illustrate how housing affordability changes in different cities of Turkey in a longer period.

By using empirical approaches, this paper helps to understand how serious housing affordability problems of Turkey in aggregate and urban levels. This evidence helps to explain declining ownership ratio in low-income groups and in urban areas. Reliable explanations on existing housing crisis of Turkey also help to develop affordable housing policies.

Declining housing affordability and homeownership ratio may translate as the rising housing inequality and insecurity among Turkish households. Moreover, better affordability values of higher income groups suggest that existing inequality, economic/social segmentation, and hence social tension between high and low income groups, may further increase. In this respect, the authors suggest socially important policies such as reducing income/wealth inequalities and increasing affordable housing supply.

This study offers a detailed empirical case study analysis that can be used as an exemplar of how to overcome data constraints in other evolving housing market contexts. This study sets out an approach overcoming the challenges of measurement. This study also combines existing methodological approaches with the modified variables to provide a more realistic aggregate-/urban-level housing affordability picture. The authors calculated some parts of housing affordability ratio and index series using discretionary income, minimum wage and effective minimum wage to show the variations of different measurement approaches. Some constructed series are also sensitive to income distribution and poverty thresholds. Collectively, this empirical approach, developed by using emerging market data, provides a contribution to the literature.

The aim of this paper is to propose extended intellectual capital (IC) indicators. The study shows that the essence of IC in the context of value is residual income, its growth rate and growth rate of equity taken together. It allows creating IC measures (modified residual income and economic value added of equity) that contain these components. The study investigates the relationship between IC and market value for Russian public firms.

The authors propose modified residual income and modified economic value added of equity as IC metrics. This study tests a relationship between market value and IC to investigate suggested metrics. Static and dynamic panel data models are used. 25 companies from the MOEX Russia Index were included in the study. The study covers the period from 2014 to 2018.

The findings show a strong positive relationship between market value and IC. The results confirm that extended IC measures have a stronger connection to market value.

Firstly, these results benefit managers. They can use proposed extended IC measures as targets for the company when planning business strategy and generating business environment. Secondly, suggested IC measures can help shareholders and investors achieve their long-term goal – wealth maximization.

The value of this article is the development of IC theory and valuation. The proposed measures differ in the way that they consider the growth rates – the main determinants of value along with efficiency.

Contrary to the implications of economic theory, consumption inequality in the United States did not react to the increases in income inequality during the last three decades. This paper investigates if a change in the type of income inequality – from permanent to transitory – or a change in the ability to insure income shocks is responsible for this. A measure of household consumption is imputed into the Panel Study of Income Dynamics to create panel data on income and consumption for the period 1980–2010. The minimum distance investigation of covariance relationships shows that both explanations work together: the share of transitory shocks increases over time, but the capability to insure against permanent and transitory income shocks also improves. Together, these phenomena can explain the lack of an increase in consumption inequality.

This paper investigates the housing affordability crisis from the perspective of vulnerable social groups (VSG) in Turkey and Turkey's megacities, Istanbul, Ankara, and Izmir, over the period of 2010 and 2019.

The author employ house cost and multiple income variables, involving residual income, to construct socially informative house cost-to-income (HCI) ratios. To measure the country/urban level socio-economic dimensions of the affordability crisis, the author develop 12 main and 76 specific housing affordability criteria.

The author find that housing is not affordable in Turkey and low/unequal distribution of income is a contributive factor for the affordability crisis of VSG. The evidence suggests that housing unaffordability for VSG is deeply rooted in the socio-economic/demographic disparities that eventually result in income and homeownership inequalities.

Constructed HCI ratios provide precise information for the targeted housing affordability policies for the VSG defined by education level, age, location, income distribution, employment status/condition and gender. The author' socially targeted modeling approach briefly suggests that housing affordability policies should focus on low-educated groups, young generations, some elementary occupations, employees in low-income industries, and casual/regular-small firms' employees.

This is the first study that provides nuanced information on housing affordability for Turkey by employing HCI ratios for the targeted VSG. This socially targeted empirical analysis is the first analysis for developing housing markets as well. From the methodological perspective, the author contribute information quality of the housing affordability ratio by using income data of various aggregate-level socio-economic/demographic groups.

Value relevance studies, in particular international comparative studies, use market values sampled at different dates relative to the fiscal year-end. This paper aims to contribute a theoretical and empirical analysis of the relationship between value relevance and the month of market value sampling.

The paper examines two components of value relevance, coincident relevance and forecast relevance, which the paper develops on the basis of the Ohlson model. The paper measures value relevance by estimating separate panel-data regressions for each of the 12 months around fiscal year-end. The sample consists of companies listed in two continental European countries, France and Germany, over the 1989-2008 period.

In both country panels, the paper finds that overall value relevance is higher when market value is sampled before or close to fiscal year-end, but incremental value relevance varies between domestic and International Financial Reporting (IFRS) accounting standards. Regression results reveal significant variations in coefficients over the following months of market value in French panel and its IFRS sub-sample only.

The scope of the study is limited to the average value relevance parameters of companies listed on stock exchanges in France and Germany. Future research may be devoted to other countries and study additional determinants of value relevance.

The study shows that the selection of the month of market value sampling can have significant impact on value relevance regression results. Therefore, sensitivity analysis needs to be included in research studies which rely on the value relevance approach.

The paper contributes the first systematic analysis of the variation in value relevance parameters in response to the selection of the month in which market value is sampled.

Aims to promote an integrated performance measurement system.

The literature on R&D performance measurement identifies the need for an integrated performance measurement system for strategy implementation. Develops a theoretical framework for R&D performance measures, incorporating real options to define strategic net present value, which values the plan to make R&D investments.

Real options techniques can be used to value managers' options to shelter investments from adverse effects and exploit upside potential. The shift in valuation paradigms from a naïve net present value model to active risk management implicit in real options requires performance measures that reflect real option value and defines strategic value created (SVC), which is based on residual income concepts. Since residual income is known to be superior to ROI in motivating goal congruence, infers that SVC has similar advantages.

Illustrates how SVC would be used as a performance measure for a new drug in the commercialization stage, considers several relevant questions and discusses how SVC could be used in a firm's balanced scorecard.

Previous studies on housing affordability in China were concentrated in China’s coastal and central regions. The purpose of this paper is to investigate housing affordability of urban residents in Northwest China. Moreover, this paper attempts to understand the consistency and influencing factors of various indicators on the evaluation of housing affordability.

This paper uses multiyear data on house sales, residents’ incomes and living expenses from 2011 to 2022. House price-to-income ratio, housing affordability index and residual income approach were calculated by using these data and used as the measure of housing affordability.

The results show that there are obvious differences in the housing affordability among the Xi’an, Lanzhou and Yinchuan during 2011–2022, and the housing affordability of residents in cities with small population and economic scale is better. The ability of most urban residents to afford suitable housing is still poor, and the ability to afford small-sized housing is better. Most families with below-middle income have poor housing affordability. It is also observed that although various indicators had similarities in the evaluation of residents’ housing affordability, the comprehensive evaluation results of multiple indicators were more reliable.

The research results provide a basis for the decision-making of the government’s urban housing policy and improvement of residents’ housing conditions.

The results have a clear understanding of the housing affordability of urban residents in Northwest China. The study found that the geographical location and topography of the city is also a factor affecting the housing affordability.