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In: Accounting

summarize and synthesize the following paragraph: "While residual income is a popular performance measure with appealing...

summarize and synthesize the following paragraph:

"While residual income is a popular performance measure with appealing theoretical properties, implementing this metric using readily available ?nancial accounting numbers can be challenging. This issue is addressed widely in the practitioner literature, but recommendations are often con?icting. This paper demonstrates that accounting choices and adjustments cannot be combined arbitrarily, but must be chosen to complement each other in order to achieve incentive alignment between managers and owners"

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ekkarill92 answered 1 year ago
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