Journal of Applied Corporate Finance最新文献

{"title":"Alignment exposed: How CEOs are paid, and what their shareholders get for it","authors":"Marc Hodak","doi":"10.1111/jacf.12693","DOIUrl":"https://doi.org/10.1111/jacf.12693","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 4","pages":"44-51"},"PeriodicalIF":1.4,"publicationDate":"2025-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145772645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Message from the Editors","authors":"Don Chew, John McCormack","doi":"10.1111/jacf.12692","DOIUrl":"https://doi.org/10.1111/jacf.12692","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"2-3"},"PeriodicalIF":1.4,"publicationDate":"2025-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436152","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Value creation in the internal corporate market: Designing effective intra-company charges","authors":"Marc Hodak","doi":"10.1111/jacf.12691","DOIUrl":"https://doi.org/10.1111/jacf.12691","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 4","pages":"58-64"},"PeriodicalIF":1.4,"publicationDate":"2025-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145772644","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The end of cost allocations as we know them","authors":"Marc Hodak","doi":"10.1111/jacf.12694","DOIUrl":"https://doi.org/10.1111/jacf.12694","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 4","pages":"52-57"},"PeriodicalIF":1.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145772729","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bridging the gap between accounting returns and economic returns","authors":"Bartley J. Madden,&nbsp;Donn DeMuro","doi":"10.1111/jacf.12686","DOIUrl":"https://doi.org/10.1111/jacf.12686","url":null,"abstract":"<p>A fundamental principle in economics (and finance) is that a proposed investment should be greenlighted if its return on investment exceeds the opportunity cost of capital. The economic view says that the greenlighted investment is expected to be a justified use of resources and therefore socially beneficial.</p><p>An economic return has a precise description. For an investment with known cash outlays and cash receipts over its investment life, the economic return is the internal rate of return (IRR). However, an accounting return is a snapshot in time, derived from accounting statements that average ongoing investments initiated over previous years, each with differing economic returns over time.</p><p>The challenge of mathematically describing differences between accounting returns and economic returns has a long history.1 Such work provides mathematical insights, typically using highly simplified models of the firm. Note that the increasing importance of intangible assets further obfuscates the measurement of economic returns.2 This paper bridges the gap by introducing a practical Translator simulation software that enables users of accounting data to get hands-on experience with the complex differences between accounting and economic returns.</p><p>The paper describes how the Translator simulates a firm whose specified economic returns generate accounting statements, which then enable accounting returns to be calculated. The Translator facilitates experiential learning by using adjustments to accounting data, such as the capitalization and amortization of outlays for intangible assets, which in turn bridge the gap between accounting returns and economic returns. This improves the measurement of life-cycle performance variables—economic returns approximated by accounting returns (vs. the cost of capital) and reinvestment rates over time.3</p><p>The section, <i>Accounting Returns versus Economic Returns</i>, briefly discusses the research on accounting returns versus economic returns. Also highlighted is an inflation-adjusted accounting return—CFROI (cash-flow-return-on-investment).4 The section, <i>The Design and Operation of the Translator</i>, explains how the Translator incorporates inflationary environments plus a wide range of variables, including the characteristics of new investments, for example, an uneven pattern of cash receipts over the investment life. The section <i>Concluding Thoughts</i> summarizes the main conclusions and the benefits to users from a simulation tool for learning that leads to more accurate accounting returns. The Appendix provides a comprehensive roadmap explaining the equations used to construct the Translator.</p><p>The pessimism of the above researchers permeates Richard Brief's 1986 book, a compilation of the most influential articles on accounting returns versus economic returns.7 One such article by Thomas Stauffer documented, for a wide variety of conditions, the magnitude and sign of deviations from ","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"79-88"},"PeriodicalIF":1.4,"publicationDate":"2025-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jacf.12686","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Bet on innovation, not ESG metrics, to lead the net zero transition","authors":"Bartley J. Madden","doi":"10.1111/jacf.12683","DOIUrl":"https://doi.org/10.1111/jacf.12683","url":null,"abstract":"&lt;p&gt;In 1987, the United Nations defined sustainable development as meeting the needs of present generations without compromising the needs of future generations. Today, the top priority for sustainability is the transition to Net Zero—that is, net zero greenhouse gas (GHG) emissions. Carbon dioxide, a GHG, is a major contributor to global warming.&lt;/p&gt;&lt;p&gt;In the pages that follow, I provide three different perspectives on how companies are most likely to help get us to Net Zero. The first is the widespread, conventional perspective that Environmental, Social, and Governance (ESG) metrics will lead the way to a successful transition to Net Zero. The second uses systems thinking to better describe the complexity of navigating a path to Net Zero and highlights the critical role of innovation. The third promotes systems thinking for corporate boards with the aim of improving decision-making and accelerating innovation and adaptation in a fast-changing Net Zero world.&lt;/p&gt;&lt;p&gt;Facing pressure from institutional asset managers, companies today must begin navigating a path to Net Zero.1 As metrics keyed to the “E” of ESG and specifically related to GHG emissions proliferate, investors are increasingly using ESG scorecards as part of their decision-making. At the beginning of 2022, the capital devoted to exchange-traded, ESG-focused funds exceeded $2.7 trillion. Moreover, regulatory bodies continue to make this kind of data mandatory in corporate reports. As a consequence, managements and boards of directors are motivated to take actions that can make their companies look good at least in terms of ESG metrics.&lt;/p&gt;&lt;p&gt;But the objective of such companies ought, of course, to be to reduce their GHG emissions. The current default reporting methodology is the GHG Protocol, in accord with which Scope 1 emissions are those directly produced by a firm's operations—for example, from driving owned and leased vehicles. Scope 2 missions are those produced by facilities that generate electricity bought and consumed by the company. Scope 3 emissions originate from upstream operations in a company's supply chain and from downstream use by both its “wholesale” and end-use consumers. The GHG Protocol methodology has been criticized as lacking accuracy and verifiability (primarily in terms of Scope 3), in significant part for requiring that the same emissions reported multiple times by different companies.&lt;/p&gt;&lt;p&gt;To address this and other limitations of the Protocol, Robert Kaplan and Karthik Ramanna have proposed an innovative solution that recognizes the integrated nature of pollution activities across the economy. A company's existing accounting system and cost-accounting infrastructure would record the GHG units emitted during operations as an &lt;i&gt;E-liability&lt;/i&gt;.2 All along the supply chain, companies would transfer the E-liability associated with goods delivered and record their end-of-period E-liability. This method eliminates multiple counting of emissions in the conceptua","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"60-69"},"PeriodicalIF":1.4,"publicationDate":"2025-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jacf.12683","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A value creation strategy (VCS) framework: Archetypes for achieving top quartile total shareholder returns","authors":"Marwaan R. Karame","doi":"10.1111/jacf.12689","DOIUrl":"https://doi.org/10.1111/jacf.12689","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 4","pages":"69-76"},"PeriodicalIF":1.4,"publicationDate":"2025-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145772484","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Executive summaries","authors":"","doi":"10.1111/jacf.12685","DOIUrl":"https://doi.org/10.1111/jacf.12685","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"4-6"},"PeriodicalIF":1.4,"publicationDate":"2025-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Michael Jensen's contributions to the theory of the firm: A tribute in three acts","authors":"Bartley J. Madden,&nbsp;Douglas E. Stevens","doi":"10.1111/jacf.12684","DOIUrl":"https://doi.org/10.1111/jacf.12684","url":null,"abstract":"","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"70-78"},"PeriodicalIF":1.4,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Extending the pragmatic theory of the firm with shared values and social norms","authors":"Bartley J. Madden,&nbsp;Douglas E. Stevens","doi":"10.1111/jacf.12687","DOIUrl":"https://doi.org/10.1111/jacf.12687","url":null,"abstract":"&lt;p&gt;In the new economy, corporate finance is faced with complex environmental, social, and political challenges, including a loss of trust in public corporations to address the wider problems of people and planet. Attempts to address the environmental and social responsibilities of business emerged during the 1960s, which motivated Milton Friedman to write his classic article in 1970: “The Social Responsibility of Business is to Increase its Profits.”1 Nevertheless, the globalization of business and the rise of large multinationals increased environmental and social concerns over the next two decades. Corporate finance responded by incorporating corporate social responsibility as an important management control. In April 2006, the UN launched the Principles for Responsible Investment at the New York Stock Exchange, which included a non-exhaustive list of objectives related to material Environmental, Social, and Governance (ESG) risks. In response, corporate finance incorporated ESG goals in their management controls, as did corporate boards, shareholder groups, and world governments. Almost two decades later, however, market and political forces have led many firms to curtail their ESG goals and focus on “sustainability.”&lt;/p&gt;&lt;p&gt;The Pragmatic Theory of the Firm was developed to enable managers, boards of directors, investors, and policy makers to make better decisions to benefit the firm, its stakeholders, and society at large. The theory provides important intuition missing from other economic theories by modeling the firm as a value-creating system and making explicit the connection between the firm's life-cycle financial performance and its market valuation.2 In this paper, we demonstrate how incorporating shared values and social norms increases the descriptive power of the Pragmatic Theory of the Firm. This approach not only improves the ability of the theory to describe value creation (and destruction) in the new economy, but it also supports the corporation's responsibility to people, planet, and profit. Importantly, this approach helps resolve recent debates over shareholder capitalism versus stakeholder capitalism, as well as disagreements about whether corporations need to sacrifice their profit-making obligation to investors to serve the broader needs of society and the environment. Further, this approach helps settle recent debates about the purpose of the corporation and its role in spreading the benefits of capitalism to all of society. Finally, this approach avoids political polarization by focusing on shared values and social norms that maximize value creation and societal flourishing across multiple cultures, populations, and times.&lt;/p&gt;&lt;p&gt;Our approach mirrors prior efforts to expand the usefulness of the economic theory of the firm. In his 1937 article, “The Nature of the Firm,” Ronald Coase asked a fundamental question: Why do firms exist? His main theoretical innovation was to introduce the concept of transaction costs to explain","PeriodicalId":46789,"journal":{"name":"Journal of Applied Corporate Finance","volume":"37 3","pages":"98-109"},"PeriodicalIF":1.4,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jacf.12687","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145436034","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}