Accounting - Research Publications

Permanent URI for this collection

Search Results

Now showing 1 - 10 of 30
  • Item
    Thumbnail Image
    An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal Setting
    Anderson, SW ; Dekker, HC ; Sedatole, KL (INFORMS, 2010-01)
    Prior research documents performance improvements following the implementation of pay-for-performance (PFP) bonus plans. However, bonus plans typically pay for performance relative to a goal, and the manager whose performance is to be evaluated often participates in setting the goal. In these settings, PFP affects managers' incentive to influence goal levels in addition to affecting performance effort. Prior field research is silent on the effect of PFP on goals, the focus of this paper. Using sales and sales goal data from 61 stores of a U.S. retail firm over 10 quarters, we find that the introduction of a performance-based bonus plan with participative goal setting is accompanied by lower goals that are more accurate predictors of subsequent sales performance. Statistical tests indicate that increased goal accuracy is attributable to managers “meeting but not beating” goals and to new information being impounded in goals. We further investigate how differences among managers are associated with goal levels. We find significant “manager effects” but no “supervisor effects.” In additional tests we find that cross-sectional differences among managers are related to differing marginal returns to slack-building effort. Turning to the role of new information on goals, we find that prior period performance has incremental power to explain goal levels in the postplan period. Our results provide field-based evidence that PFP and participative goal setting affect the level and accuracy of goals, effects that are associated with both information exchange and with managers' incentives to influence goals.
  • Item
    Thumbnail Image
    Qualitative management accounting research: rationale, pitfalls and potential A comment on Vaivio (2008)
    Lillis, A (EMERALD GROUP PUBLISHING LTD, 2008)
    Purpose This paper's purpose is to provide a commentary on “Qualitative management accounting research: rationale, pitfalls and potential,” a paper by Juhani Vaivio. Design/methodology/approach The approach is to draw on alternative research paradigms to expand the definition and discussion of qualitative research in management accounting. Findings The paper endorses many of the prescriptions in Vaivio but expands the definition and discussion of qualitative research in management accounting to recognize the blurred boundaries with field research more generally, and to be more inclusive of qualitative field research from a positivist/functionalist perspective. Similarly, the need for qualitative research to challenge textbook, economics and consulting representations of management accounting is acknowledged, but the range of catalysts is expanded to highlight the potential for qualitative research building on both qualitative and quantitative extant research. This paper also seeks to broaden the discussion of legitimate study design characteristics and data collection methods, and to stress the importance of matching research design with research question. Originality/value The paper stresses the value of pluralism and inclusiveness in both methodological and method choices.
  • Item
    Thumbnail Image
    Budgeting practices and performance in small healthcare businesses
    King, R ; Clarkson, PM ; Wallace, S (ELSEVIER, 2010-03)
  • Item
    Thumbnail Image
    Leadership and control system design
    Abernethy, MA ; Bouwens, J ; van Lent, L (ELSEVIER, 2010-03)
  • Item
    Thumbnail Image
    A multi-method approach to building causal performance maps from expert knowledge
    Abernethy, MA ; Horne, M ; Lillis, AM ; Malina, MA ; Selto, FH (Elsevier BV, 2005-06-01)
  • Item
    Thumbnail Image
    Scale Effects in Capital Markets-Based Accounting Research
    Barth, ME ; Clinch, G (WILEY-BLACKWELL PUBLISHING, INC, 2009-04-01)
    Abstract:  Based on data simulated using a modified Ohlson (1995) valuation model, we investigate effects on inferences of five potential scale‐related effects: multiplicative and additive omitted scale factors, scale‐varying coefficients, survivorship, and heteroscedasticity. We find that diagnostics identified in prior research are not successful in detecting or distinguishing these scale effects. Thus, we investigate the effectiveness at mitigating scale effects of six specifications of regressions of equity market value on equity book value and earnings: undeflated, share‐deflated, equity book value‐deflated, lagged price‐deflated, returns, and equity market value‐deflated. For each specification, we compare frequency of correct rejection that the coefficients equal zero, coefficient bias and absolute error, and regression explanatory power. We find that share‐deflated and undeflated specifications generally perform the best, regardless of the type of scale effect.
  • Item
    Thumbnail Image
    Seasonality in fund performance: An examination of the portfolio holdings and trades of investment managers
    Gallagher, DR ; Pinnuck, M (WILEY, 2006-09-01)
    Abstract:  This study examines the extent to which seasonal variation arises across calendar months in the performance of active Australian equity managers. While it is well documented that there is seasonality in equity market returns, it is unknown whether calendar month variation in managed fund performance exists. Employing a unique database of monthly stock holdings, we find evidence consistent with systematic variation in the risk‐adjusted performance of active investment managers over the calendar year. Specifically, we find fund performance is higher in the months when corporate earnings are announced. We also document that the performance of fund managers is lower in the months preceding the tax year‐end. Finally, we report evidence that investment manager performance is greater than normal in December, possibly due to both window dressing and the Christmas holiday effect. These findings have important implications for investors attempting to exploit anomalies in fund returns by timing their entry and exit points from active equity funds.
  • Item
  • Item
    Thumbnail Image
    The Value of Assurance on Voluntary Nonfinancial Disclosure: An Experimental Evaluation
    Coram, PJ ; Monroe, GS ; Woodliff, DR (AMER ACCOUNTING ASSOC, 2009-05)
    SUMMARY: This study examines whether assurance on the voluntary provision of nonfinancial performance indicators affects the stock price estimates of a group of sophisticated financial report users. We conducted an experiment where participants were provided with a case study containing excerpts from a hypothetical company's annual report. Nonfinancial performance and assurance were manipulated in a 2 (positive and negative nonfinancial performance indicators) ×2 (assurance and no assurance) +1 (control condition) between-subjects design. After reading the case materials, the participants indicated whether they believed the company's stock price would increase or decrease based on the information provided. As expected, we found that the nonfinancial performance indicators had a significant effect on stock price estimates. In addition, consistent with attribution theory, an assurance report on the voluntarily disclosed nonfinancial performance indicators only had a significant effect on stock price estimates when the nonfinancial performance indicators were positive, suggesting that the value of assurance is context-specific. Our research contributes to the discussion on the value of expanded assurance services and also on the value of enhanced corporate disclosure.
  • Item
    Thumbnail Image
    Doing Quantitative Field Research in Management Accounting
    Anderson, SW ; Widener, SK ; Chapman, C ; Hopwood, A ; Shields, M (Elsevier, 2006-12-01)