Accounting - Research Publications
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ItemElectronic commerce investments, the resource-based view of the firm, and firm market value(Elsevier BV, 2005-03-01)
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ItemA multi-method approach to building causal performance maps from expert knowledge(Elsevier BV, 2005-06-01)
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ItemManagement control for market transactions: The relation between transaction characteristics, incomplete contract design, and subsequent performance(INFORMS, 2005-12)Using an unusually comprehensive database on 858 transactions for information technology products and accompanying services, we study how close partners who are exposed to opportunistic hazards structure and control a significant transaction. We analyze data on the terms of contracting to determine whether transaction and supplier characteristics that generate opportunistic hazards are related to the formal management control structure. We also examine whether misalignment between transaction and supplier characteristics and the control structure is associated with ex post performance problems. Characteristics associated with hazards are found to be positively related to contract extensiveness. Factor analysis of the use of 24 contract terms reveals four groups of contract terms that are commonly used in combination. We interpret these factors as “dimensions of management control” and label them: assignment of rights, product and price, after-sales service, and legal recourse. Characteristics associated with hazards are positively related to the use of all four dimensions of management control, with different hazards associated with different controls. We then examine the relation between transaction characteristics and ex post transaction problems, demonstrating that even in the presence of mutually agreeable contracts, hazards remain. We conclude that costs of contracting are associated with increased use of contract terms on assignment of rights, after-sales service, and legal recourse. Finally, we present evidence that management control structures that are better aligned with transaction hazards mitigate subsequent performance problems, though at a nontrivial cost of contracting.
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ItemAccounting as a social and institutional practice: Perspectives to enrich our understanding of accounting change(WILEY-BLACKWELL, 2005-10)In the past two decades, a body of literature has developed which depicts accounting as a social and institutional practice. Researchers adopting this perspective typically demonstrate an appreciation for the pervasive and enabling characteristics of accounting and an awareness of the importance of local, time‐specific factors which shape accounting change within particular instances. This work examines this literature and classifies its content using the themes identified by Miller (1994). Drawing upon aspects of this literature, the final sections develop a broad, thematic framework to assist researchers in future studies directed at understanding the diverse and complex processes through which changes to the accounting domain can occur.
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ItemDisclosure incentives and effects on cost of capital around the world(AMER ACCOUNTING ASSOC, 2005-10)Prior research predicts that firms reliant on external financing are more likely to undertake a higher level of disclosure, and a higher disclosure level should, in turn, lead to a lower cost of external financing. This paper tests these predictions outside the United States where alternative legal and financial systems could mitigate the effectiveness of such disclosures and, comprehensively, examines both disclosure incentives and disclosure consequences on cost of capital for a common set of firms. Using a sample from 34 countries, we find that firms in industries with greater external financing needs have higher voluntary disclosure levels, and that an expanded disclosure policy for these firms leads to a lower cost of both debt and equity capital. Crosscountry differences in legal and financial systems affect observed disclosure levels in predicted ways. However, a surprising result in the study is that voluntary disclosure incentives appear to operate independently of country-level factors, which suggests the effectiveness of voluntary disclosure in gaining access to lower cost external financing around the world.
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ItemCross-Sectional Field Studies in Management Accounting Research—Closing the Gaps between Surveys and Case Studies(American Accounting Association, 2005-01-01)While empirical researchers in management accounting frequently address overlapping research issues using a variety of methods, there is little evidence of productive dialogue addressing the uncertainties and ambiguities raised within each stream of research. For example, survey researchers frequently call for deeper field-based insights into conflicting or ambiguous findings. Case study researchers convey rich organizational stories of management accounting in context. However, these field-based findings are rarely used to resolve the ambiguity in construct definition, measurement, and inter-relationships that plague our empirical research bases. In this paper we seek to regenerate interest in a method that has been implemented in the past to promote productive field-based dialogue on issues related to complex constructs and their interrelationships. The method is best illustrated by the cross-sectional field study approach adopted by Merchant and Manzoni (1989) to study budget target achievability. By considering the Merchant and Manzoni (1989) study as well as two other examples (Bruns and McKinnon 1993; Abernethy and Lillis 1995) we identify the range of questions suited to this method and how the method contributes significant insights to the management accounting literature. We also articulate the design attributes of cross-sectional field studies by explicitly linking the rationale for these studies with the complexity of the phenomenon under study, sampling logic, instrument design, and data analysis protocols. The insights produced from the relatively few published studies using a cross-sectional field study method suggest that opportunities for the application of this method may be underexploited.
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ItemThe importance of business risk in setting audit fees: Evidence from cases of client misconduct(WILEY, 2005-03)ABSTRACT Previous research provides evidence that, for the clients of a large audit firm, audit clients with higher perceived business risk bear the expected costs of this risk with higher audit fees. We extend the literature, which focuses on the relation between litigation risk and audit fees, by examining alleged client misconduct that is not illegal but possibly increases business risk. In particular, we examine the relation between audit fees and business risk for audit clients doing business in developing countries where bribery of top government officials has been an accepted business practice. We hypothesize that bribery‐paying clients are riskier because of both client business risk and audit business risk. Using data collected from Securities and Exchange Commission filings and audit fee data in the 1970s, before the passage of the Foreign Corrupt Practices Act, we provide evidence that audit fees were higher for clients that disclosed paying bribes. This evidence is consistent with an audit market where auditors assess business risk at the client level, then pass their expected costs to the client in the form of higher audit fees.
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ItemNo Preview AvailableEnhancing interactivity in lectures: using classroom performance system technology in first-year accounting(Department of Accounting and Business Information Systems, 2005)