The importance of human capital in building and maintaining competitive advantage is undisputed, and ensuring that employees invest in their human capital has thus become of utmost importance to firms. Despite this, management control research has not dedicated much attention to the personnel...

In this study, we investigate the determinants and consequences of budget reallocations, i.e., corrective actions to the budget made during the year. In particular, we analyze in how far allocation decisions regarding the initial budget drive subsequent reallocations, over and above the new...

The accounting literature has recently transitioned from the focus on client- or audit firm-level characteristics and their relation with audit quality to the inclusion of audit partner and team effects in audit quality. We extend this literature by studying whether tacit knowledge is a relevant...

Despite the trend in investigating combinations of MC practices that form packages or systems, there is ambiguity about what is meant by a “control package” or “control system.” In this paper, we address questions related to MC as a package and as a system, both from a conceptual and...

In this study, we investigate the choice of performance measures in promotion decisions. In particular, we examine the extent to which managers incorporate different performance measures for different types of job assignment. Based on a simple theoretical framework, we predict that, in making...

This study provides descriptive evidence on target setting policies in multi-divisional firms. Despite the importance of performance targets in practice, research mainly focuses on a few key areas in target setting, neglecting many other important aspects of target setting in organizations....

In this study we analyze the interactive effects of delegation of decision rights (task autonomy) and team task interdependence on creative team performance. Creative teams are characterized by a high requirement for both autonomy and task interdependence, suggesting that ideally creative...