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Professor Zoltan Matolcsy

Core Member, Centre for Corporate Governance

BA (Macquarie), PhD (UNSW)

Associate, FINSIA - Financial Services Institute of Australasia
Fellow, CPA Australia
Fellow, Institute of Chartered Accountants Australia

Download CV (PDF 200KB, 18 pages)

Email: Zoltan.Matolcsy@uts.edu.au
Phone: +61 2 9514 3564
Fax:
Room: CB05D.03.59A (map)
Mailing address:

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Biography

Zoltan Matolcsy teaches primarily at the postgraduate level, specialising in empirical research in the areas of accounting for managerial decisions, capital markets and contracting theory. His research has been published in leading accounting journals nationally and internationally, including The Accounting Review, Journal of Accounting Research, Contemporary Accounting Research, Journal of Banking and Finance, Journal of Corporate Finance, Journal of Business Finance, Accounting and Accounting and Finance, Australian Journal of Management, and Abacus. Zoltan was a pioneer in Australian financial studies modelling corporate failures, takeovers and mergers, investment and portfolio management, and risk assessment. His recent research has addressed current issues in corporate disclosure, corporate governance and valuations.

Before his academic career, Zoltan was Chief Investment Analyst at the Australian Stock Exchange. He has undertaken consulting assignments for a wide range of firms, from large public companies to small privately owned entities, government business enterprises and public instrumentalities.

Teaching areas

Accounting for managerial decision; capital markets based accounting; contracting theory; PhD supervision

Research

Research interests

Valuations; issues in corporate governance, such as changes in management compensation; board composition and accounting reporting; optimal compensation contracts; post earnings announcement drifts.

Research supervision: Yes


Supervised Student(s)



Greg Pazmandy - PhD student, proposed topic: Corporate governance in the public sector



Paul Thambar - PhD student, proposed topic: MCS configuration and broader organisational performance



Samir Ghannam - PhD student, proposed topic: Careers of outside directors

Publications

Journal articles

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2014, 'Group versus individual compensation schemes for senior executives and firm performance: Some evidence based on archival data', Journal of Contemporary Accounting and Economics, vol. 10, no. 2, pp. 100-114.
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The objectives of this paper are (i) to provide evidence on the association between the choice of group versus individual compensation schemes for senior executives and firm characteristics, and (ii) to provide evidence on the economic consequences of adopting a particular compensation scheme. Our key findings based on 2517 firm years for the period of 20012010 show that on average, the choice between group or individual compensation schemes for senior executive compensation schemes are consistent with a firms economic characteristics and on average, the choice of compensation schemes does not affect subsequent firm performance. However, we find some evidence that firms that adopt compensation schemes inconsistent with their economic characteristics have lower subsequent performance. Our findings are robust to a number of sensitivity tests.

Christy, J.A., Matolcsy, Z.P., Wright, A. & Wyatt, A. 2013, 'Do Board Characteristics Influence the Shareholders' Assessment of Risk for Small and Large Firms?', ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES, vol. 49, no. 2, pp. 161-196.

Conferences

Giacobbe, F., Matolcsy, Z.P. & Wakefield, J.A. 2013, 'Some evidence on management control system choices based on a transaction cost theory approach', British Accounting and Finance Association Annual Conference 2013, British Accounting and Finance Association, United Kingdom.

Matolcsy, Z.P., Giacobbe, F. & Wakefield, J.A. 2013, 'Some evidence on management control system choices based on a transaction cost theory approach', EAA 2013 36th Annual Congress, European Accounting Association, Europe.

Journal articles

Bugeja, M., Matolcsy, Z.P. & Spiropoulos, H. 2012, 'Is there a gender gap in CEO compensation?', JOURNAL OF CORPORATE FINANCE, vol. 18, no. 4, pp. 849-859.

Conferences

Bugeja, M., Matolcsy, Z.P. & Spiropoulos, H. 2012, 'Is there a gender gap in CEO compensation?', British Accounting and Finance Association Annual Conference 2012, British Accounting and Finance Association, United Kingdom.

Bugeja, M., Matolcsy, Z.P. & Spiropoulos, H. 2012, 'Is there a gender gap in CEO compensation?', 35th Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Europe.

Giacobbe, F., Matolcsy, Z.P. & Wakefield, J.A. 2012, 'Control of wholly owned foreign subsidiaries: An integrated approach', AFAANZ Conference, AFAANZ, Australia.

Journal articles

Matolcsy, Z.P., Shan, Y. & Seethamraju, V.C. 2012, 'The timing of changes in CEO compensation from cash bonus to equity-based compensation: Determinants and performance consequences', Journal of Contemporary Accounting and Economics, vol. 8, pp. 78-91.
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This study examines the determinants and performance consequences of changes in CEO compensation structure. The study uses the unique setting when Australian companies have changed from cash bonus to equity-based compensation. While most US CEOs receive some form of equity-based compensation, Australian CEOs have not always been paid equity-based compensation. According to efficient contracting theories, we argue that the change to equity-based compensation is driven by changes in firm characteristics and by the occurrence of CEO turnover, the latter of which provides a less costly opportunity for such change. Our results are consistent with the above arguments. We also document a significant negative association between changes in compensation structure and subsequent firm performance in the following year, even after controlling for CEO turnover and poor governance environments. Overall, our results suggest that the initial change to equity-based compensation is part of an error learning process made by firms that leads them towards efficient CEO compensation contracts.

Matolcsy, Z.P., Tyler, J.V. & Wells, P.A. 2012, 'Is continuous disclosure associated with board independence?', Australian Journal of Management, vol. 37, no. 1, pp. 99-123.
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This study provides evidence on the association between board composition and different types of continuous disclosure. Our sample is based on a sample of 450 firms for the period 2006-2007. Our experimental design uses both ordinary least-squares (OLS) regressions and two-stage least-squares regressions (2SLS), although the Durbin-Wu-Hausman chi(2) test indicates that the OLS results alone would be appropriate. We include the 2SLS results in order to be able to compare the results against previous findings. Our key findings are that there is no association between board composition and different types of continuous disclosure. Our results are robust with respect to alternative variable definitions.

Conferences

Bugeja, M., Matolcsy, Z.P. & Spiropoulos, H. 2011, 'Are women tougher and better negotiators? Some evidence on CEO compensation', AFAANZ Conference, AFAANZ, Australia.

Bugeja, M., Matolcsy, Z.P. & Spiropoulos, H. 2011, 'Women in senior business roles: Evidence on two conjectures', British Accounting and Finance Association Annual Conference 2011, British Accounting and Finance Association, United Kingdom.

Journal articles

Matolcsy, Z.P. & Wright, A.P. 2011, 'CEO compensation structure and firm performance', Accounting & Finance, vol. 51, no. 3, pp. 745-763.
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The objectives of our study are to estimate a model of `efficient compensation structure based on firm characteristics and test the performance consequences of deviation from the efficient compensation structure. Our results are based on 3503 firm years for the period from 1999 to 2005. The results suggest that firms whose CEOs receive compensation inconsistent with their firm characteristics have a lower performance compared to those firms whose CEOs compensation is consistent with their firms characteristics. Our measure of performance is based on both accounting and market-based performance measures. Overall, our study provides some important new insights into the links between CEO compensation structure and firm performanc

Conferences

Matolcsy, Z.P., Bugeja, M. & Spiropoulos, H. 2011, 'Women in senior business roles: evidence on two conjectures', 34th Annual Congress - European Accounting Association, European Accounting Association, Belgium.

Journal articles

Matolcsy, Z.P., Tyler, J.V. & Wells, P.A. 2011, 'The Impact of Quasi-Regulatory Reforms on Boards and their Committees during the Period 2001-2007', Australian Accounting Review, vol. 21, no. 4, pp. 352-364.
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This study investigates the cumulative impact of quasi-regulatory and regulatory reforms, and political pressure on board composition and sub-committees of boards over the period 2001 to 2007. Based on a sample of 450 firms listed on the Australian Stock Exchange, we find that most firms complied with the Principles of Good Corporate Governance and Best Practice by 2007. In particular, 85% of firms had an independent board and there was a significant increase in majority independent committees (audit, remuneration and nomination). While there was an increase in majority board independence, the increase in the mean level of board independence to 71% was modest. The level of compliance was highest for large firms, but the impact was largest on small firms, which changed their board composition the most. The relation between firm characteristics and board composition declined between 2001 and 2007, and changes in board composition were not able to be explained by changes in firm characteristics. If it is assumed that firms on average select their board to reflect their economic needs, this suggests that the changes in board composition may have been costly for firms.

Conferences

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2010, 'Group versus individual compensation schemes for senior executives and firm performance', British Accounting Association Annual Conference 2010, British Accounting Association (BAA), United Kingdom.

Loyeung, A.L., Matolcsy, Z.P. & Wells, P.A. 2010, 'The association between talent and compensation: the case of Australian chief financial officers', American Accounting Association Conference on Teaching and Learning in Accounting, American Accounting Association, USA.

Loyeung, A.L., Matolcsy, Z.P. & Wells, P.A. 2010, 'The association between talent and compensation: The case of Australian chief financial officers', 2010 AFAANZ Conference Program, AFAANZ, Australia.
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The purpose of this paper is to determine whether CFOs are remunerated for their talent, where CFO talent is characterised by the CFOs ability to successfully manage the adoption of new accounting standards (i.e., convergence to the IFRS). This paper is motivated by the lack of evidence on the determinants of CFO compensation and the global controversy surrounding executive compensation. The results are based on sample of 280 Australian firms from 2005 to 2006. Results reveal a positive association between CFO talent and CFO compensation levels and a positive relation between CFO talent and cash bonuses in the subsequent. Further, a talented CFO is more likely to be retained by the firms. Additional analyses suggest that the compensation levels of other executives such as the CEO are not affected by errors in the accounting numbers. Overall the results are consistent with the efficient labour market view, that CFOs are remunerated in manners that attracts, retains, motivates talent and reduces overall costs to the firm.

Matolcsy, Z.P., Tyler, J.V. & Wells, P.A. 2010, 'Is board independence associated with continuous disclosure?', British Accounting Association Annual Conference 2010, British Accounting Association (BAA), United Kingdom.

Matolcsy, Z.P., Wells, P.A. & Tyler, J. 2010, 'The impact of corporate governance regulation in Australia', American Accounting Association Conference on Teaching and Learning in Accounting, American Accounting Association, USA.

Tyler, J.V., Matolcsy, Z.P. & Wells, P.A. 2010, 'Corporate governance regulation and the impact on continuous disclosure in Australia', 2010 AFAANZ Conference Program, AFAANZ, Australia.
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The objective of this study is to examine the relation between board composition and continuous disclosures of Australian listed firms. One of the main objectives of the Principles of Good Corporate Governance and Best Practice (PGCG&BP) introduced by the Australian Stock Exchange (ASX) in 2003 was increased accountability. In Australia, the Continuous Disclosure Regime (CDR) provides an extensive data base to test the impact of board composition on accountability.

Wells, P.A., Tyler, J.V. & Matolcsy, Z.P. 2010, 'Was corporate governance regulation really the answer?', British Accounting Association Annual Conference 2010, British Accounting Association (BAA), United Kingdom.

Christy, J.A., Matolcsy, Z.P., Wright, A.P. & Wyatt, A. 2009, 'The association between market risk of equity and board characteristics', BAA Annual Conference 2009, British Accounting Association (BAA), United Kingdom.

Lambert, D., Matolcsy, Z.P. & Wyatt, A. 2009, 'How do analysts forecast earnings?', Program American Accounting Association Annual Meeting, American Accounting Association (AAA), USA.

Lambert, D., Matolcsy, Z.P. & Wyatt, A. 2009, 'How do analysts forecast earnings?', BAA Annual Conference 2009, British Accounting Association (BAA), United Kingdom, pp. 1-169.
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This paper addresses the question of how analysts forecast earnings. Specifically, the objectives of this paper are to provide evidence on: (1) whether analysts use the forecasting template provided by leading textbooks; and (2) whether analysts forecast errors are associated with departures from this template. We examine both short and long run analysts earnings forecasts. The literature is silent on examinations of analysts earnings forecast levels, and how these forecasts are derived. This is surprising given that all leading academic and practitioner valuation textbooks provide similar forecasting frameworks for forecasting future earnings. This framework requires analysts to assess macroeconomic, industry, strategy and financial information. Prior studies generally make the assumption that analysts use this framework, but none explicitly test this proposition. The findings are based on US samples of 28,261, 21,051 and 25,053 firm-years observations for 1 year ahead, 2 years ahead and long run analysts EPS forecasts. The key findings indicate that analysts forecasts anchor on historical EPS. Further, analysts only use the forecasting template to derive their long run earnings forecasts, but not for their short run earnings forecasts. In addition, the forecasting framework provides incremental power in explaining analysts forecast errors, which further confirms the importance of the forecasting framework. This effect increases as the forecast period is extended.

Lambert, D., Matolcsy, Z.P. & Wyatt, A. 2009, 'How do analysts forecast earnings?', 2009 AFAANZ Conference, AFAANZ, Australia, pp. 1-56.
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This paper examines the question of how analysts forecast earnings. We examine the determinants of analysts forecasts of both short and long run earnings. The paper is motivated by the importance of analyst forecasts as proxies for expected earnings, which is accompanied by a large literature on the properties of analysts forecast errors but limited evidence on the first order effecthow analysts produce the earnings forecasts. There is an implicit assumption permeating the analyst forecast literature that analysts use the fundamental analysis based forecasting frameworks laid out in the leading business valuation texts. These forecasting frameworks evaluate a firms future prospects in terms of sets of factors relating to the firms industry, strategy, and financial information. Prior studies generally assume the analysts use this business analysis framework for forecasting. The contribution of this study is to explicitly test this proposition. For 28,261, 21,051 and 25,053 US firm-year observations for analysts 1 and 2 year ahead forecasts and long run EPS forecasts, our key findings suggest that analysts anchor on historical EPS to forecast short and long run EPS consistent with the recommendations in the business analysis frameworks. However, inconsistent with the recommended fundamental analysis frameworks, our results suggest that analysts use the forecasting framework only in the long run, to obtain a long-run growth rate to apply to the historical EPS reported by management. Overall, the results suggest that analysts believe their best EPS forecast is the current historical EPS reported by management.

Matolcsy, Z.P., Lambert, D. & Wyatt, A. 2009, 'How do analysts forecast earnings?', 32nd Annual Congress European Accounting Association Programme, European Accounting Association (EAA), Europe.

Matolcsy, Z.P., Riddell, S.J. & Wright, A.P. 2009, 'Alternative explanations for the association between market values and stock-based compensation expenditure', Half-Yearly Journal of Contemporary Accounting and Economics Australiasian Symposium, Journal of Contemporary Accounting and Economics (JCAE), Hong Kong, pp. 1-48.
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The relation between stock-based compensation and market values has been tested previously in the literature, but the empirical findings are inconsistent; as both negative and positive relations have been documented. The objective of this study is to provide an explanation for why both negative and positive relations between stock-based compensation expenditure and market values can be consistent with rational markets. We argue that stock-based compensation can be used either as a reward for past performance or as an incentive for future performance. We predict that there is a negative relation to market values when stock-based compensation is granted primarily as a reward to chief executives for past performance, while there is a positive relation when stock-based compensation is used to provide incentives for enhanced future performance. This prediction is tested on a sample of 259 firm-year observations for the period 1999-2004 using an instrumental variables approach, where the sample is classified into the 'reward' and 'incentive' groups on the basis of prior period performance and option characteristics. The key findings confirm the proposition. In particular, there is a significant negative association between stock-based compensation expenditure and market values for the 'reward group'. A number of sensitivity tests confirm the main findings.

Journal articles

Matolcsy, Z.P., Riddell, S.J. & Wright, A.P. 2009, 'Alternative explanations for the association between market values and stock-based compensation expenditure', Journal of Contemporary Accounting and Economics, vol. 5, no. 2, pp. 95-107.
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The relation between stock-based compensation and market values has been tested previously in the literature, but the empirical findings are inconsistent; as both negative and positive relations have been documented. The objective of this study is to provide an explanation for why both negative and positive relations between stock-based compensation expenditure and market values can be consistent with rational markets. We argue that stock-based compensation can be used either as a reward for past performance or as an incentive for future performance. We predict that there is a negative relation to market values when stock-based compensation is granted primarily as a reward to chief executives for past performance, while there is a positive relation when stock-based compensation is used to provide incentives for enhanced future performance. This prediction is tested on a sample of 259 firm-year observations for the period 1999-2004 using an instrumental variables approach, where the sample is classified into the 'reward' and 'incentive' groups on the basis of prior period performance and option characteristics. The key findings confirm the proposition. In particular, there is a significant negative association between stock-based compensation expenditure and market values for the 'reward group'. A number of sensitivity tests confirm the main findings.

Conferences

Matolcsy, Z.P., Tyler, J.V. & Wells, P.A. 2009, 'Determinants of board composition in Australia and the impact of corporate governance regulation', BAA Annual Conference 2009 Website, British Accounting Association (BAA), United Kingdom, pp. 1-36.
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This study investigates the relation between firm characteristics and board composition in Australia for a sample of the same 432 listed firms in 2001 and 2007 and the impact of the Principles of Good Corporate Governance and Best Practice issued by the Australian Stock Exchange in 2003. Two feature of this regulation were (a) it recommended independent boards for all firms, without regard to firm characteristics (an approach commonly described as `one size fits all) and (b) it allowed non-compliance through `if not why not reporting. Using various designations of independence and firm size subsamples we find for `Top 100 firms in 2001 up to 49% (Adjusted R2 48.8) of variation in board independence may be explained by firm characteristics, but generally the explanatory power was much lower. Evidence is provided that although more firms had majority independent boards the relation between board composition and firm characteristics may have weakened over the period. This highlights a potential concern that the regulation has imposed unnecessary costs or inappropriate governance mechanisms on Australian firms.

Tyler, J.V., Matolcsy, Z.P. & Wells, P.A. 2009, 'Some descriptive evidence of the impact of corporate governance regulation on the composition of boards' of directors and committees in Australia', 32nd Annual Congress European Accounting Association Programme, European Accounting Association, Europe.

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2008, 'Economic determinants of group versus individual compensation schemes for senior executives', Program of American Accounting Association Annual Meeting, American Accounting Association (AAA), USA.

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2008, 'Performance consequences of group versus individual compensation schemes for senior executives', Technical Program of 2008 AFAANZ/IAAER Conference, AFAANZ, Australia.

Journal articles

Matolcsy, Z.P. & Wyatt, A. 2008, 'The association between technological conditions and the market value of equity', The Accounting Review, vol. 83, no. 2, pp. 479-518.
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The objective of this study is to provide evidence on how technological innovation conditions underlying the firm's investments drive earnings growth and, hence, market value of equity. Technologies develop and flourish or die out through the combined investment decisions of those firms doing the inventing, and those firms that adopt those inventions, and thereby help to spread (or diffuse) the innovations into wider use. Hence, technology is important for the investment decisions of all firms, regardless of whether they patent. We focus on three aggregate measures of technological innovation conditions: the success rate of past technological investments, technology complexity, and the technology development period. We use the interactions between each of these three conditions with earnings to capture the combined effect on market value of a firm's technological innovation environment. Our sample comprises 12,594 U.S. firm years for the period 19902000 including firms actively producing new technologies and firms that adopt technologies for their processes and products.

Chapters

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2008, 'Do independent directors add value?' in Clarke, T. & dela Rama, M. (eds), Fundamentals of Corporate Governance (4-Volume Set), Sage Publications, Los Angeles, pp. 149-158.

Conferences

Matolcsy, Z.P., Wallace, A. & Wright, A.P. 2008, 'The relation between private equity takeovers and takeover premiums', Program of American Accounting Association Annual Meeting, American Accounting Association (AAA), USA.

Wright, A.P., Matolcsy, Z.P. & Wallace, A. 2008, 'The relation between private equity takeovers and takeover premiums', 31st Annual Congress European Accounting Association Conference Website Papers, European Accounting Association (EAA), Europe, pp. 1-23.
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The relation between acquisitions and takeover premiums has been extensively documented in the academic literature to date, but these studies have focused on settings whereby the takeover or merger is initiated by a market place competitor. Few studies have extensively focused on private equity takeovers, a unique phenomenon that institutional markets are currently experiencing, and which provides a new setting to understand the composition and structure of takeover premiums. The objective of this study is to provide detailed evidence on the takeover premium offered by private equity in terms of the costs of corporate governance and costs of internal compliance [especially in the light of the implementation of the Sarbanes-Oxley Act (2002)], the role of leverage to increase returns and reduce free cash flow wastage, as well as changes in the senior management team of the target firm. Using a sample of 110 private equity transactions in the United States for the period 2003 2007, the key findings are that certain public firms exhibit greater costs of compliance, indicating that the implementation of SOX imposes significant net costs that can be removed through a firms privatisation by private equity. The findings also demonstrate that excessive managerial remuneration plays an important role in dictating the magnitude of the takeover premiums offered. Finally, this study also provides support to prior literature by illustrating that benefits can be gained by acquiring firms with low levels of debt.

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2007, 'Economic determinants of group versus individual compensation schemes for senior executives', 2007 AFAANZ Conference, AFAANZ, Gold Coast, Australia, pp. 1-66.
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This paper investigates firm characteristics associated with the choice of individual versus group compensation schemes for senior executives below the CEO level. We define individual compensation schemes where senior executives are compensated independently from other senior executives, where incentive compensation is linked to individual performance. In contrast, group compensation schemes are defined where senior executive compensation is jointly determined with other senior executives, with compensation linked to common incentives. This paper is motivated by limited evidence on compensation schemes for senior executives beyond the CEO, limiting critical evaluation of senior executives compensation. Preliminary evidence using Australian data provides support that individual compensation schemes are adopted by firms where individual senior executive inputs (effort) and outputs are separable and observable. We also find support that group compensation schemes are adopted where there are efficiencies from senior executive co-operation and interdependencies between executives, such as in integrated firms. The empirical evidence suggest that there are important differences between how firms set changes in total compensation as apposed to the mix of long and short term incentive components. The findings contribute to the ongoing debate surrounding the determination of appropriate corporate governance mechanisms in the presence of agency conflicts, and especially executive compensation schemes.

Brown, P.J., Matolcsy, Z.P. & Wells, P.A. 2007, 'Economic determinants of group versus individual compensation schemes for senior executives'.

Journal articles

Lim, S., Matolcsy, Z.P. & Chow, D. 2007, 'The Association Between Board Composition And Different Types Of Voluntary Disclosure', European Accounting Review, vol. 16, no. 3, pp. 555-583.
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This study examines the association between board composition and voluntary disclosure in annual reports. In particular, it addresses the incentives within the agency theory framework for both inside and independent directors to disclosure additional inf

Matolcsy, Z.P. & Wright, A.P. 2007, 'Australian CEO compensation: The descriptive evidence', Australian Accounting Review, vol. 17, no. 3, pp. 47-59.
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CEO compensation has been well documented in the US in the academic and professional literature. However, despite widespread attention by the Australian business community and the federal government to this issue, descriptive evidence on Australian CEOs' compensation contracts is very sparse. Using a sample of large Australian firms for three years, this study provides the first detailed descriptive evidence on both the levels and structures of Australian CEO compensation. The study compares these findings with those from the US and reveals significant variations in CEO compensation contracts between the Australian and US markets.

Conferences

Matolcsy, Z.P., Tyler, J.V. & Wells, P.A. 2007, 'The relation between board composition, firm characteristics and the impact of regulation'.

Reports

Brown, D.A., Malmi, T., Bedford, D.S., Matolcsy, Z.P. & Sivabalan, P. CPA Australia 2006, The balanced scorecard in Australia, Melbourne, Australia.

Conferences

Linden, P. & Matolcsy, Z.P. 2006, 'The value relevance of corporate governance guidelines for capital markets', 29th EAA Annual Conference, EAA, Brussels, Belgium, pp. 1-39.

Journal articles

Matolcsy, Z.P. & Wright, A.P. 2006, 'Are we paying our CEOs too much?', JASSA, vol. Summer, no. 4, pp. 27-31.
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Conferences

Matolcsy, Z.P. & Wright, A.P. 2006, 'CEO compensation structure and firm performance'.

Matolcsy, Z.P. & Wright, A.P. 2006, 'CEO compensation structure and firm performance'.

Journal articles

Matolcsy, Z.P. & Wyatt, A. 2006, 'Capitalized intangibles and financial analysts', Accounting and Finance, vol. 46, no. 3, pp. 457-479.
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We examine whether firms that capitalize a higher proportion of their underlying intangible assets have higher analyst following, lower dispersion of analysts earnings forecasts and more accurate earnings forecasts relative to firms that capitalize a lower proportion. Under Australian generally accepted accounting principles, capitalization of intangible assets has become increasingly `routine since the late 1980s. It is predicted that this experience leads Australian analysts to expect firms with relatively more certain intangible investments to signal this fact by capitalizing intangible assets. Our results are consistent with this. We find that capitalization of intangible assets is associated with higher analyst following and lower absolute earnings forecast error for firms with a stock of underlying intangible assets. Our tests suggest a weaker association between capitalization and lower earnings forecast dispersion. We conclude that there are benefits for analysts, for management to have the option to capitalize intangible assets. These findings suggest that IAS 38 Intangible Assets and AASB 138 Intangible Assets reduce the usefulness of financial statements.

Matolcsy, Z.P., Wells, P.A. & Lee, G. 2006, 'Pecuniary and non-pecuniary compensation and firm performance: some evidence from Chinese state dominated and non-state dominated enterprises', Journal of Contemporary Accounting and Economics, vol. 2, no. 2, pp. 86-100.

Conferences

Matolcsy, Z.P., Wright, A.P. & Riddell, S.J. 2006, 'Alternative explanations for the association between market values and stock based compensation expenditure', 29th EAA Annual Conference, EAA, Brussels, Belgium, pp. 1-41.

Reports

Sivabalan, P., Matolcsy, Z.P., Brown, D.A. & Malmi, T. CPA Australia 2006, Budgetary practices of Australian companies, Melbourne, Australia.

Journal articles

Wieder, B., Booth, P., Matolcsy, Z.P. & Ossimitz, M.-.L. 2006, 'The impact of ERP systems on firm and business process performance', Journal of Enterprise Information Management, vol. 19, no. 1, pp. 13-29.
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Purpose - The purpose of this article is to provide further insights into the adoption of enterprise resource planning (ERP) systems and the impacts on organisational performance. It aims at challenging existing claims of ERP vendors with regard to the benefits of their products and at providing evidence of the benefits of bundling ERPS with supply chain management systems. Design/methodology/approach - A survey was conducted to collect data on several aspects of organisational performance in companies that adopted ERPS and/or SCMS and the respective control groups. Financial key performance indicators were used to measure overall firm performance and the supply-chain operations reference model to operationalise performance at the business process (supply chain) level. Findings - The key results contradict the claims of ERPS vendors insofar as no significant performance differences were found between ERPS adopters and non-adopters, either at the business process level, or at the overall firm level. While it could be confirmed that the longer the experience of firms with ERPS, the higher their overall performance, no evidence was found of a similar effect on business process (supply chain) performance. Only those ERPS adopters that also adopted SCMS achieved significantly higher performance at the business process level. Originality/value - Despite the small size of the SCMS user sample, the results do provide some important insights into the relationships between ERPS, SCMS and performance which might encourage both researchers and practitioners in that field to critically reflect on the "optimal" mix of modules and software packages within increasingly diverse forms of enterprise systems. © Emerald Group Publishing Limited.

Matolcsy, Z.P., Booth, P. & Wieder, B. 2005, 'Economic benefits of enterprise resource planning systems: Some empirical evidence', Accounting and Finance, vol. 45, no. 3, pp. 439-456.
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The present study provides empirical evidence on the economic benefits of enterprise resource planning (ERP) systems. We use a modified value chain approach and identify several ratios for each component of the value chain to reflect improvements as a result of the adoption of ERP systems. These financial ratios are tracked for 2 years for a group of companies that adopted ERP systems versus a group of companies that did not adopt ERP. Both univariate and multivariate statistics are used to test for differences. The key result of the present study is that the adoption of ERP systems leads to sustained operational efficiencies and improved overall liquidity. In addition, some support is found for increased profitability 2 years after the adoption of ERP and for improvements in accounts receivable management. © AFAANZ, 2005.

Conferences

Matolcsy, Z.P., Lee, G. & Wells, P.A. 2005, 'The compensation-performance relation in China for state dominated enterprises and non-state dominated enterprises', Asia-Pacific Journal of Accounting and Economics Symposium, -, -.

Mehta, M.N., Matolcsy, Z.P. & Wells, P.A. 2005, 'Enterprise bargaining and earnings management', Asia-Pacific Journal of Accounting and Economics Symposium, -, -.

Sivabalan, P., Malmi, T., Brown, D.A. & Matolcsy, Z.P. 2005, 'An exploratory study of Australian operations budget practice', 2005 AFAANZ Conference Proceedings, AFAANZ, Melbourne, Australia, pp. 1-26.

Chow, D., Lim, S. & Matolcsy, Z.P. 2004, 'Board composition and voluntary disclosure', 2004 AFAANZ Conference Proceedings, AFAANZ, Melbourne, Australia, pp. 1-52.

Other

Chow, D., Lim, S. & Matolcsy, Z.P. 2004, 'Board composition and voluntary disclosure'.

Conferences

Chow, D., Lim, S. & Matolcsy, Z.P. 2004, 'Board composition and voluntary disclosure.', 27th Annual Congress of the European Accounting Association, European Accounting Association, Brussels, pp. 1-52.

Ferguson, A.C. & Matolcsy, Z.P. 2004, 'Audit Quality and Post Earnings Announcement Drift', -, -, -.

Journal articles

Ferguson, A.C. & Matolcsy, Z.P. 2004, 'Audit quality and post earnings announcement drift', Asia-Pacific Journal of Accounting and Economics, vol. 11, no. 2, pp. 121-137.
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This study examines the value of audit quality in the capital markets setting. We argue that higher quality auditors are associated with lower post-earnings announcement drift (PEAD). Results show that clients of brand name auditors exhibit lower PEAD than small auditors, but only weak auditor industry specialist effects are identified. PEAD also differs for clients of individual Big 6/5 auditors, with clients of the smaller Arthur Andersen and Deloittes exhibiting greater PEAD, consistent with the DeAngelo (1981) size hypothesis. Finally, PWC exhibits higher PEAD in 1998, suggesting market uncertainty about quality implications of audit market structural change.

Linden, P. & Matolcsy, Z.P. 2004, 'Corporate governance scoring systems: what do they tell us?', Australian Accounting Review, vol. 14, no. 1, pp. 9-16.

Conferences

Linden, P. & Matolcsy, Z.P. 2004, 'Do corporate governance guidelines and scoring system matter?', 27th Annual Congress of the European Accounting Association, European Accounting Association, Brussels, pp. 1-40.

Matolcsy, Z.P., Mehta, M.N. & Wells, P.A. 2004, 'Enterprise bargaining and earnings management', 27th Annual Congress of the European Accounting Association, European Accounting Association, Brussels, pp. 1-40.

Matolcsy, Z.P., Mehta, M.N. & Wells, P.A. 2004, 'Enterprise bargaining and earnings management', SAAA/ IAAER 2004 Biennial International Conference - International Research Conference for Accounting Educators, International Association for Accounting Education and Research, Durban, South Africa, pp. 1-40.

Other

Matolcsy, Z.P., Mehta, M.N. & Wells, P.A. 2004, 'Enterprises bargaining and earnings management'.

Journal articles

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2004, 'Do independent directors add value?', Australian accounting Review, vol. 14, no. 1, pp. 33-40.

Conferences

Mehta, M.N., Matolcsy, Z.P. & Wells, P.A. 2004, 'Enterprise bargaining and earnings management', 2004 AFAANZ Conference Proceedings, AFAANZ, Melbourne, Australia, pp. 1-40.

Wieder, B., Booth, P.J., Matolcsy, Z.P. & Ossimitz, M. 2004, 'A new approach towards measuring the performance of enterprise systems', International Conference on Enterprise Systems and Accounting (ICESA '04), Technological Educational Institute of Thessaloniki, Thessaloniki, Greece, pp. 19-43.

Ferguson, A.C. & Matolcsy, Z.P. 2003, 'Audit quality and post earnings announcement drift', 26th Annual Congress - European Accounting Association, EAA, Sevilla, pp. 1-27.

Ferguson, A.C. & Matolcsy, Z.P. 2003, 'Audit quality and post earnings announcement drifts', 2003 Accounting and Finance Association of Australia and New Zealand Conference, AFAANZ, Melbourne, pp. 1-27.

Ferguson, A.C. & Matolcsy, Z.P. 2003, 'Audit quality and post earnings announcement drifts', European Auditing Research Network 2003 Symposium, EARNet, Manchester, pp. 1-27.

Ferguson, A.C. & Matolcsy, Z.P. 2003, 'Audit quality and post earnings announcement drifts', American Accounting Association - 2003 Annual Meeting, AAA, United States, pp. 1-27.

Journal articles

Matolcsy, Z.P. 2003, 'Corporate governance', National Accountant, vol. 19, no. 4, pp. 26-27.

Matolcsy, Z.P. 2003, 'Nothing ventured, nothing gained', CACharter - The magazine for Australian CAs, vol. 74, no. 8, pp. 16-16.

Matolcsy, Z.P. 2003, 'Think 'revenue' not just costs', National Accountant, vol. 19, no. 5, pp. 16-19.

Other

Matolcsy, Z.P. & Ferguson, A.C. 2003, 'Audit quality and post earnings announcement drift (Acct paper #59)'.

Conferences

Watts, A. & Matolcsy, Z.P. 2003, 'What else drives the value of companies - an economics of innovation approach', 2003 Accounting and Finance Association of Australia and New Zealand Conference, AFAANZ, Melbourne, pp. 1-40.

Watts, T. & Matolcsy, Z.P. 2003, 'The relationship between symbolic adoption and practical use of government initiated accounting practices: the case of Australian universities', 2003 Hawaii International Conference on Business, HICBusiness, Hawaii, pp. 1-21.

Journal articles

Matolcsy, Z.P. 2002, 'Business valuations: understanding the differences between the three methods of valuing a business is the key to avoiding common mistakes and achieving the most reliable and meaningful result', National Accountant, vol. 19, pp. 20-22.

Conferences

Matolcsy, Z.P. & Watts, E. 2002, 'The symbolic use of accounting practices: the case of Australain universities', European Accounting Association Conference 2002, DIS Congress Service, Copenhagen, Denmark, pp. 1-28.

Matolcsy, Z.P. & Watts, E. 2002, 'The symbolic use of accounting practices: the case of Australian universities', British Accounting Association Conference, BAA, UK, pp. 1-28.

Matolcsy, Z.P. & Wright, A.P. 2002, 'The relation between CEO compensation and corporate performance - The Australian evidence'.

Matolcsy, Z.P. & Wyatt, A. 2002, 'What drives the values of technological companies-an economics of innovation approach', European Accounting Association Conference 2002, DIS Congress Service, Copenhagen, Denmark, pp. 1-39.

Matolcsy, Z.P., Booth, P.J. & Wieder, B. 2002, 'The economic benefits of Enterprise Resource Planning Systems: Some empirical evidence', Accounting Association of Australia and New Zealand Conference (AAANZ Conference 2002), AAANZ, Melbourne.

Journal articles

Matolcsy, Z.P., Stokes, D. & Wells, P.A. 2002, 'Valuing intangible assets provides new challenges', Journal of the Securities Institute of Australia JASSA, vol. 1, no. 1, pp. 1-7.
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Conferences

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2002, 'Value relevance of board composition within corporate governance'.

Wieder, B., Booth, P.J., Matolcsy, Z.P. & Ossimitz, M. 2002, 'Information Systems Quality and ERP - Insights into the Links between 'Value' and 'Integration'', European Conference on Information Technology Evaluation (ECITE Conference), ITEVA, Netherlands.

Journal articles

Matolcsy, Z.P. & Petty, J.D. 2001, 'Internal report of derivatives: some Australian evidence', Australian Accounting Review, vol. 11, no. 1 issue 23, pp. 26-33.

Conferences

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2001, 'The value-relevance of board composition within corporate governance'.

Journal articles

Wyatt, A., Matolcsy, Z.P. & Stokes, D. 2001, 'Capitalisation and Intangibles: a Review of Current Practice and the Regulatory Framework', Australian Accounting Review, vol. 11, no. 2, pp. 22-38.

Conferences

Booth, P.J., Matolcsy, Z.P. & Wieder, B. 2000, 'ERP-Systems and Functional Integration in Australia's Industry', 4th Annual SAP Asian Pacific Institute of Higher Learning Forum, SAPPHIRE, SAP, Sydney.

Booth, P.J., Matolcsy, Z.P. & Wieder, B. 2000, 'Integrated Information Systems (ERP-Systems) and Accounting Practise - The Australian Experience', Third European Conference on Accounting Information Systems, Maastricht Accounting, Auditing and Information Management Research Center, Maastricht, NL.

Booth, P.J., Matolcsy, Z.P. & Wieder, B. 2000, 'Interaction between New Accounting Technologies and Integrated Business Solutions', Business Forum 2000, Adelaide Division ICAA, Adelaide, Australia.

Journal articles

Booth, P.J., Matolcsy, Z.P. & Wieder, B. 2000, 'The impacts of enterprise resources planning systems on accounting practice - the Australian experience', Australian Accounting Review, vol. 10, no. 3, pp. 4-18.

Conferences

Matolcsy, Z.P. 2000, 'Balanced scorecard'.

Matolcsy, Z.P. 2000, 'Balanced scorecards - A strategic planning approach', National Institute of Accountants.

Matolcsy, Z.P. 2000, 'Current issues in business valuations'.

Matolcsy, Z.P. 2000, 'Economic value added - Managing your business', National Institute of Accountants.

Matolcsy, Z.P. 2000, 'Enhancing shareholders valuations', CPA Australia Congress.

Journal articles

Matolcsy, Z.P. 2000, 'Executive cash compensation and corporate performance during different economic cycles', Contemporary Accounting Research, vol. 17, no. 4, pp. 671-692.

Matolcsy, Z.P. 2000, 'Is it time for a financial health check?', Construction Contractor, vol. September.

Conferences

Matolcsy, Z.P. 2000, 'Key issues in business valuations', CPA Australia Congress.

Matolcsy, Z.P. 2000, 'Strategic thinking, company restructuring and financial analysis', CPA Australia Congress.

Journal articles

Matolcsy, Z.P. 2000, 'Sub-contractors need financial tick of health', Management in Education, vol. October.

Conferences

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2000, 'The value-relevance of board composition within corporate governance'.

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2000, 'The value-relevance of board composition within corporate governance'.

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2000, 'The value-relevance of board composition within corporate governance'.

Matolcsy, Z.P., Stokes, D. & Wright, A.P. 2000, 'The value-relevance of board composition within corporate governance'.

Wieder, B., Booth, P.J. & Matolcsy, Z.P. 2000, 'Information systems integration and accounting practices', 2nd Conference on New Directions in Management Accounting: Innovations in Practice and Research, EIASM, Brussels.

Journal articles

Lim, S. & Matolcsy, Z.P. 1999, 'Earnings management of firms subjected to product price controls', Accounting & Finance, vol. 39, no. 2, pp. 131-150.

Matolcsy, Z.P. 1997, 'Checklist of six global trends which can affect corporate strategic planning', Charter, vol. August, pp. 59-61.

Matolcsy, Z.P. 1996, 'The necessary prerequisites to successful strategic planning', Reflections, vol. -, pp. 37-37.

Matolcsy, Z.P. 1995, 'Are independent experts worth the cost?', JASSA, vol. 1, no. March, pp. 2-6.

MATOLCSY, Z.P. & LIANTO, T. 1995, 'THE INCREMENTAL INFORMATION-CONTENT OF BOND RATING REVISIONS - THE AUSTRALIAN EVIDENCE', JOURNAL OF BANKING & FINANCE, vol. 19, no. 5, pp. 891-902.

Matolcsy, Z.P. & Pazmandy, G. 1995, 'Predicting half-yearly accounting income numbers with statistical models', Australian Accounting Review, vol. 5, no. 2, pp. 56-63.
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Prediction of half-yearly accounting income numbers has an important role in investment analysis, credit ratings, budgeting, auditing and other areas of the accounting and finance profession. This study provides the Australian evidence on two issues: the statistical relationship between half-yearly accounting income numbers such as earnings per share, net profit and sales; and the ability of statistical models to predict these numbers. The study finds that the best way to predict the next period's half-yearly accounting income numbers is to use the immediately preceding half-yearly income number, and for inflation-adjusted sales the corresponding previous half-yearly figures, or to use a statistical model based on the immediately preceding half-yearly figure adjusted by a statistically based "smoothing constant".

Matolcsy, Z.P. & Schultz, J. 1994, 'Errors in financial journalism', Australian Studies in Journalism, vol. 3, pp. 335-355.

Castagna, A. & Matolcsy, Z.P. 1989, 'The marginal information content of selected items in financial statements', Journal of Business Finance & Accounting, vol. 16, no. 3, pp. 317-333.

Graham, R.G. & Matolcsy, Z.P. 1987, 'Dividends by computer: Imputation questions answered', JASSA, vol. 2, no. July, pp. 27-29.

MATOLCSY, Z.P. 1986, 'THE DISTRIBUTIVE NOMINAL AND REAL MICRO EFFECTS OF INFLATION ON SECURITY RETURNS - SOME AUSTRALIAN EVIDENCE', JOURNAL OF BANKING & FINANCE, vol. 10, no. 3, pp. 361-376.

Castagna, A. & Matolcsy, Z.P. 1985, 'Accounting ratios and models of takeover target screens: Some empirical evidence', Australian Journal of Management, vol. 10, no. 1, pp. 1-15.

Castagna, A., Greenwood, L.H. & Matolcsy, Z.P. 1984, 'An evaluation of alternative methods for estimating systematic risk', Australian Journal of Management, vol. 9, no. 2, pp. 1-13.

MATOLCSY, Z.P. 1984, 'EVIDENCE ON THE JOINT AND MARGINAL INFORMATION-CONTENT OF INFLATION-ADJUSTED ACCOUNTING INCOME NUMBERS', JOURNAL OF ACCOUNTING RESEARCH, vol. 22, no. 2, pp. 555-569.

MATOLCSY, Z.P. 1984, 'THE MICRO EFFECTS OF INFLATION ON CORPORATE-TAXATION AND PROFITABILITY - SOME EMPIRICAL-EVIDENCE FOR 17 INDUSTRY GROUPS', ECONOMIC RECORD, vol. 60, no. 171, pp. 356-365.

Castagna, A. & Matolcsy, Z.P. 1983, 'The evaluation of traded options pricing models in Australia', Journal of Business Finance & Accounting, vol. 10, no. 2, pp. 225-233.

CASTAGNA, A.D. & MATOLCSY, Z.P. 1982, 'A 2 STAGE EXPERIMENTAL-DESIGN TO TEST THE EFFICIENCY OF THE MARKET FOR TRADED STOCK-OPTIONS AND THE AUSTRALIAN EVIDENCE', JOURNAL OF BANKING & FINANCE, vol. 6, no. 4, pp. 521-532.

Castagna, A. & Matolcsy, Z.P. 1981, 'The market characteristics of failed companies: Extensions and further evidence', Journal of Business Finance & Accounting, vol. 8, no. 4, pp. 467-483.
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This article presents an analysis of the market characteristics of failed companies. The analysis includes an identification of their systematic characteristics, examination of the characteristics and timing of their continuous price adjustment prior to failure, comparison of the characteristics and timing of their continuous price adjustment during an economic upswing and downswing and a contrast of the characteristics and timing of the continuous price adjustment of mining companies and industrial companies. A description of the experimental design is also presented in the study. The major findings of the study are: failed companies have a higher systematic risk, than the a-priori value of one and that the market on average adjusts the prices of failed companies approximately thirty months prior to failure. Finally, the results suggest that mining companies have a shorter price adjustment period than industrial companies.

Castagna, A. & Matolcsy, Z.P. 1981, 'The prediction of corporate failure: Testing the Australian experience', Australian Journal of Management, vol. 6, no. 1, pp. 23-50.
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The purpose of this paper is to address some of the methodological issues which have evolved from the literature on corporate failures, and to report the results of an empirical investigation on the usefulness of financial models for the prediction of corporate failures. The experimental design is based on the 21 listed public companies that failed in Australia during the period 1963 to 1977, inclusive, and which met with minimum data requirements. It examines the performance of linear versus quadratic classification rules; temporal versus atemporal models; equal versus unequal priors of failure, variable dimension reduction, and a validation test proposed by Lachenbruch (1967). The results of the study suggest that it is difficult to identify a unique model to predict corporate failures, without specifying the utility preference of the user. Utility preference in this context refers to the minimization of either Type I, Type II, or the overall error rate of a failure model.

Matolcsy, Z.P. 1981, 'A quantitative data base to evaluate the performance of the corporate sector from 1963 to 1978', Accounting & Finance, vol. 21, no. 1, pp. 57-74.
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Currently, there is not an adequate data base which would cover the performance of the corporate sector at the industry level. The Australian Financial Systems Inquiry has initiated the development of such a data base, which includes both financial and market variables to quantify the performance of the different industry groups for the period of 19631978. This data base can assist both the academic researcher and the financial practitioner in their work. The objective of this paper is to describe the content of this data base.

Castagna, A. & Matolcsy, Z.P. 1979, 'Risk assessment and accounting ratios', JASSA, vol. 1, no. March, pp. 11-14.

Castagna, A. & Matolcsy, Z.P. 1978, 'The relationship between accounting variables and systematic risk and the prediction of systematic risk', Australian Journal of Management, vol. 3, no. 2, pp. 113-126.
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This paper conducts several tests of association between accounting information and the systematic risks of firm's equities. It also evaluates several models of the prediction of systematic risk from past rate-of-return information

Castagna, A. & Matolcsy, Z.P. 1977, 'The prediction of corporate failure', JASSA, vol. 1, pp. 9-11.

Castagna, A. & Matolcsy, Z.P. 1976, 'Financial ratios as predictors of company acquisitions', JASSA, vol. 4, pp. 6-10.

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