Showing 1 - 9 of 9
In the face of uncertainty, firms often place a premium on flexibility. By keeping their options open, firms are able to adjust decisions as uncertainty is resolved. Valuing this benefit of flexible projects is the focus of the real options approach to capital budgeting. This paper presents an...
Persistent link: https://www.econbiz.de/10005586941
Growth of online auctions and other forms of e-commerce has been hampered by concerns about the privacy, integrity, and security of online transactions. To earn the trust of their participants, new e-commerce organizations, like traditional organizations, have to reach the state of expectations...
Persistent link: https://www.econbiz.de/10005586956
Prior research has estimated piecemeal the determinants of audit fees, non-audit services fees and abnormal accruals. Intuition, informal analysis, and a variety of theories of various aspects of auditor-client interaction suggest that audit fees, nonaudit fees, and abnormal accruals are jointly...
Persistent link: https://www.econbiz.de/10005587021
Many accounting textbooks state that the opportunity cost of idle fixed assets is zero. A few exceptions may refer to factors such as repair and overhaul, employee vacation and congestion that give rise to strictly positive opportunity cost. We show that in important and frequently encountered...
Persistent link: https://www.econbiz.de/10005587038
Business organizations can be classified into three broad categories: entrepreneurial organizations without management hierarchy, entrepreneurial organizations with managerial hierarchy, and large publicly-held corporations. The key difference between the first two is the presence of agency...
Persistent link: https://www.econbiz.de/10005587120
This paper deals with the changing relationship between economic theory and accounting practice and theory. It argues that many of the basic problems encountered in practice cannot be avoided in any attempt to construct an economic theory adequate to handle dynamics. In particular problems of...
Persistent link: https://www.econbiz.de/10005587136
Control in organizations can be defined as expectational equilibrium, or correspondence between how the members of an organization behave and how others expect them to behave. Using a contract model of organizations as the base, we use human expectations, common knowledge, and culture to propose...
Persistent link: https://www.econbiz.de/10005587140
Many accounting textbooks state that the opportunity cost of idle fixed assets is zero. A few exceptions refer to repair, overhaul, employee vacation and congestion, giving rise to positive opportunity cost. We show that in important and frequently encountered situations, idled assets have...
Persistent link: https://www.econbiz.de/10005587154
Prior research has estimated piece-meal the determinants of audit fees, non-audit fees and abnormal accruals. Intuition, informal analysis, and a variety of theories suggest that audit fees, non-audit fees, and abnormal accruals are jointly determined. We address this endogeneity issue by...
Persistent link: https://www.econbiz.de/10008853005