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Purpose: The chapter’s objective is to develop a new model or approach to earnings management for sustainability. The challenges posed by climate change and environmental degradation have stimulated interest in sustainability. However, such interest has not led to the development of new models demonstrating how firms’ earnings management can contribute to sustainability and sustainable development.

Methodology: The chapter develops a model demonstrating how earnings management can contribute to sustainability. The surplus income model uses income targeting as a channel through which the surplus income generated by a firm is allocated to a relevant sustainability activity or project. The author shows that a firm’s total income can be divided into the target and surplus income components. The author then explores the possible activities that firms may allocate surplus income to in the interest of sustainability.

Finding: The surplus income model or approach allows a firm to contribute or donate to a relevant sustainability activity or project out of its surplus income. Under this model, managers are incentivised to generate surplus income from which they can contribute to a relevant sustainability activity or project, thereby making the firm a champion of sustainability.

Originality: Previous studies have not examined how earnings management by firms can contribute to sustainability. This chapter fills this gap in the literature.

This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages, reserve army, and capital accumulation in his investigation of economic development. The Lewis 1954 development model is compared to other models advanced at the time by Harrod, Domar, Swan, Kaldor, Solow, von Neumann, Nurkse, Rosenstein-Rodan, Myint, and others. Lewis applied the notion of economic duality to open and closed economies.

This paper presents new evidence that the error in estimating the economic welfare of a transport scheme can be very large. This is for two reasons. Firstly when cost changes are large the income effect can be significant. This means the change in consumer surplus is no longer a good estimate of the compensating variation — the true measure of welfare benefit. Secondly, in the presence of large cost changes estimating the change in consumer surplus using the Rule of Half can lead to large errors. The paper uses a novel approach based on stated choice and contingent valuation data to estimate the size of this error for the situation of the provision of fixed links to islands in the Outer Hebrides of Scotland.

The purpose of this paper is to examine the effects of institutional factors and the European Union (EU) accounting harmonization on the value‐relevance and comparability of dirty surplus accounting flows (DSFs) in the member countries throughout the period 1993 to 2002.

The returns‐earnings models and fixed‐effect operating income growth models are used to examine the differences in the incremental and relative relevance of DSFs between countries which have a piecemeal system of regulation with significant input from the profession and/or market participants, and the code law countries with the government being the most important institution with regard to accounting regulation. Moreover, the relevance of DSFs in the three sub‐periods is compared, each reflecting quite distinct attitudes in the EU towards international accounting harmonization.

DSFs are incrementally relevant in Denmark, Finland, Ireland, Sweden and the UK, where equity market plays an important role in the country's financing system; and in comparison to comprehensive income, reported income is a dominant measure of performance in most European countries, with the exception of the five afore‐mentioned countries. There is also evidence that cross country differences in the value‐relevance and predictability of DSFs decrease in the later years of this sample period.

Future research focusing upon the specific accounting changes made by companies in the EU is needed for a better understanding of the relative importance of stock market integration and standard setting changes in explaining the characteristics of DSFs.

The results indicate that the convergence in the reporting of DSFs over time is driven by global capital market integration, and more importantly, the accounting harmonization activities carried out via self‐regulation with significant input from the profession and/or market participants at national level.

The paper seeks to explore, firstly, the extent to which differences in the reporting of DSFs across the EU may be explained by institutional differences. Secondly, it explores whether or not differences across the countries have decreased in three phases of the EU harmonization process.

Studies concerning Soviet taxation demonstrate a diversity of opinions on the nature of turnover taxes. Four major views on the subject have emerged: (1) turnover taxes are simply a sales (excise) tax on articles' of consumption sold to the Soviet consumer; (2) not all turnover taxes are a sales tax, some of them are a substitute for rent on production of certain industrial materials; (3) in addition to being a sales (excise) tax on consumer goods and rent on some industrial materials, there exists a third type of turnover tax which is levied on agricultural production of the peasantry; (4) turnover taxes are a portion of the surplus product produced in industry and agriculture.

We propose a simple model consisting of two separated markets: the market for good y and the market for good x. Purchasing information about consumer behavior in the former market helps the monopolist firm, in the latter market, to price-discriminate. Consumers differ in their income and in their level of myopia. Personal data market regulation could both increase consumers' awareness about the treatment of their data and allow them to have their data erased from the data holder. We find that the former aspect of the policy reduces the number of transactions, and hence tends to reduce total surplus, while the second typically boosts willingness to pay of consumers and has positive effects on surplus, provided that the share of high-income consumers is not too high. The overall effect of regulation on total welfare depends on the share of high-income and myopic consumers.

Whenever capitalism in the West appears to be dragging with unresolved problems, then quite a few people, including professional economists, begin to think that perhaps socialism is a better alternative. Conversely, in the East even a larger number of people, including economists (who are not activists), seriously believe that in view of their shortages and meagre incomes capitalism would be a better alternative.