CEIBS, Asia's leading business school, has developed the Future Leaders' Boot Camp to transform emerging managers into leaders who can confidently embrace their roles as major players in today's increasingly complex business environment. The Boot Camp will provide an intensive learning experience to young and ambitious managers who are seeking career advancement and broader responsibilities. More information here: http://www.ceibs.edu/execed/index/108458.shtml
Accounting numbers (and especially net income, equity or total assets) are based on conventions that are shaped by accounting standard setters. Elected choices result from a trade-off between the information needs of various stakeholders. This paper investigates how accounting choices meet the information needs of various stakeholders. Analyzing the R&D policy of Renault, one of the largest carmakers in Europe, over ten years (from 2002 to 2011), the paper illustrates how Renault modifies its R&D accounting policy from total expensing (a static convention) to capitalization (a dynamic convention), coping with the shift from State capitalism dominance to professional shareholder emphasis. Our findings are based on a content analysis of analysts' reactions to Renault accounting choices as well an extensive analysis of the documentation related to Renault (annual reports, presentations to analysts, conference call transcripts). Interestingly, while the R&D capitalization, promoted by the international accounting standard setter (the International Accounting Standards Board - IASB) in line with its advocacy of investors' interest as the principal recipient of accounting information, is supposed to help investors better understand the firm future cash flow, Renault's choice has been constantly challenged, even doubted by analysts. Our findings contradict the conventional wisdom in which shareholders should prefer dynamic conventions of accounting over static conventions while from its inception, the IASB purposely decided to favor investors over other stakeholders and promoted dynamic options of accounting choices.
An opening keynote speech in which renowned economist Professor Wu Jinglian spoke about the deepening reforms expected in China's new round of urbanization signalled the frank discussions that took place during the China New Urbanization Forum 2013, hosted by the China Europe International Business School. Prof. Wu is Baosteel Chair Professor of Economics at CEIBS and Research Fellow of the Development Research Center, State Council of PRC. Read the press release here: http://www.ceibs.edu/media/archive/117642.shtml
In all sectors, whether public or private, there is mounting pressure to do more with less, not just for reasons of fiscal austerity, but because certain ways of doing things have become unsustainable or obsolete. In the case of health care, it's a question of making better use of available resources through innovation. To understand which innovation initiatives will be successful, it is paramount that each and every aspect of a project is explored in depth. This is the thinking behind the InnPACT framework, developed by the IESE/Accenture Center for Research in Health-Care Innovation Management (CRHIM). Traditionally, health-care innovation has tended to be analyzed in terms of costs versus benefits, or shareholders versus customers. InnPACT takes a more holistic approach, providing a standardized way to describe, evaluate and compare health innovation, using a 360-degree assessment tool that takes account of all stakeholders. Using numerous examples drawn from health-care initiatives in Europe and the United States, this article outlines the basic steps to follow to ensure a better quality of life for your own innovation efforts. Though conceived for the health-care sector, the principles behind the InnPACT framework can be applied to other sectors.
CEIBS Baosteel Chair Professor of Economics Wu Jinglian discusses the implications of the upcoming Third Plenary Session of the 18th CPC Central Committee. He says that many economic and social problems must be solved in order for China to implement a second round of economic reforms and establish a modern market-oriented economic system. Prof. Wu spoke via video at CEIBS 19th Anniversary Forum.
Asian Case Research Journal
This case was prepared by Associate Professor Terence Tsai of China Europe International Business School, Shanghai, China, Shaohua Lu of Ohio State University, USA, Dr. Gary Liu and Shubo Liu of China Europe International Business School, as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative or business situation.
The case study is supported by research grants of China Europe International Business School.