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Purpose This study aims to examine the long-term effects of adopting economic value added (EVA) as a compensation tool on managers’ behaviour. Design/methodology/approach The authors extend the sample used in prior studies both in the time and the cross-section dimensions. Findings The study conclusions are distinct from those offered by existing studies. The authors show that EVA adopters, relative to non-EVA adopters, increase the working capital cycle, use their assets less intensively and decrease their payouts to shareholders via a decrease in dividends and share repurchases. In investing decisions, the authors find a decrease in new investments, but no change in asset dispositions after the adoption of EVA compensation plans. Originality/value The study results highlight that the EVA adoption provides more incentives to reduce the total cost for capital rather than increasing operations and maximising shareholder wealth. The results also have implication for corporate management, particularly in the area of management compensation scheme design.

In light of the recent legal developments, this paper examines the anti-money laundering (AML) legislation in Turkey and the European Union (EU). Turkey is a candidate country for the EU membership thus harmonization of the Turkish and the EU AML frameworks has become increasingly important. Furthermore, these AML laws pose important responsibilities for the financial sector and professionals therein. Within this paper we concentrate on specific AML provisions in Turkey and the EU. Our analysis includes inter alia, criminalization of money laundering, recording and reporting obligations, enforcement and sanctions mechanisms within Turkish and EU AML regimes. While we have found that each AML regime examined has adopted a unique framework, it is clear that the minimum standards provided by international (e.g. the Financial Action Task Force) and regional (e.g. EU) legal instruments have been the main driving force behind all national regulations. Based on our normative and socio-legal analysis which has been informed by legal instruments as well as semi-structured interviews, it can be argued that there is a need for an independent regulatory professional body with competence to monitor compliance and provide training mechanisms and guidance for liable professionals in Turkey. Shortcomings of the Turkish law enforcement agencies, prosecutors, and the judiciary are also highlighted. While we have made some feasible recommendations for reform, based on our academic opinion and interviews conducted, we have concluded that a comprehensive evaluation of the success of the Turkish AML regime is difficult to determine as there are no cases studies (e.g. prosecutions, convictions) and this will require further research.

Purpose This paper aims to investigate firm-level variations in the extent of mandatory disclosures and address the drivers of mandatory disclosure using data from the Gulf Co-operation Council (GCC) region. Design/methodology/approach The extent of mandatory disclosure is examined using a disclosure index created with reference to 24 International Financial Reporting Standards (IFRSs). Findings The authors find that the extent of mandatory disclosure required by applicable IFRSs/International Accounting Standards increases with international presence, group firms, the level of voluntary disclosure, firm age and the education level of company financial controllers. It decreases with firm size and the proportion of institutional share ownership. The degree of board independence is positively related to the level of mandatory disclosure in firms with no state ownership. Profitability positively affects the level of mandatory disclosure to a greater extent in more liquid GCC firms. The results confirm that there is a greater sensitivity of mandatory disclosure to loss than to profit. Loss increases, whilst profit decreases, the extent of mandatory disclosure. Research limitations/implications The results promote further understanding of international financial reporting differences in an emerging country setting. Practical implications The findings provide a detailed insight to investors, financial analysts, practitioners and academics. Originality/value The authors develop a highly granular mandatory disclosure index in a developing country setting and identify key drivers of such disclosure.

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