Despite the extensive research in human capital management and performance measurement, intelligent treasoning mechanisms, which integrate human resource (HR) practices into strategic-level shareholder decisions, are still emerging. This paper discusses a novel approach of designing a decision-modeling tool, which assesses the impact of contemporary human resource management (HRM) practices to ...

This research demonstrates that the threat of shareholder intervention negatively affects firm manager innovation incentive. The underlying mechanism is that innovation may cause stock price to reflect less accurate information about a firm’s fundamental value, which makes firm managers vulnerable to shareholder intervention. Firm managers under the threat of shareholder intervention will be bi...

This paper examines the hypothesis that non-US firms cross-list in the United States to increase protection of their minority shareholders. Cross-listing on the NYSE or Nasdaq subjects a non-US firm to a number of provisions of US securities law, and requires the firm to conform to US GAAP. It therefore increases the expected cost to managers of extracting private benefits, and commits the firm...

Enterprises require mechanisms to ensure that their business processes implement and fulfill internal controls in context of regulatory compliance such as Sarbanes Oxley Act. In this paper we propose an approach for the modeling and implementation of internal controls in business processes. The approach is based on the formal modeling of internal controls, thus it can serve as the basis for usa...

We model long-run firm performance, management compensation, and corporate governance in a dynamic, nonstationary world. We show that managerial compensation and governance policies, which, in a single-period context, can best be rationalized by self-serving managerial influence over board policy, are shareholder-wealth maximizing in a dynamic setting. For example, shareholder wealth is maximiz...

There has been much consideration of the drive for organisations to create value for shareholders, and much argument that the creation of value for shareholders is derived from the reduction of operational costs. The proponents of the techniques of shareholder value would deny this and argue that the creation of value for shareholders derives from improved decision making. Thus the discourse of...