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Economic performance (economic profits, economic income, or underlying operating performance) of a firm is not observable. Market participants use accounting earnings and other proxies to measure the otherwise unobservable economic performance. Ball and Brown (1968) show that accounting earnings capture the economic performance to some extent. In(More)
While it is well established that diversifying acquisitions by large, cash-rich firms destroy shareholder wealth, we document positive abnormal returns to such acquisitions in the tobacco industry. We show that these abnormal returns are associated with proxies for lower expected expropriation costs. Specifically, we show that wealth creation increases in(More)
When firms manage earnings up (down), the articulation between the income statement and the balance sheet generally forces a simultaneous increase (decrease) in net operating assets. Therefore, under ceteris paribus conditions, upward earnings management results in a contemporaneous increase in profit margin (i.e., operating income divided by sales) and(More)
In this paper, we investigate the synthesis of piecewise affine feedback controllers to address the problem of safe and robust controller design in robotics based on high-level controls specifications. The methodology is based on formulating the problem as a collection of reach control problems on a polytopic state space. Reach control has so far only been(More)
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