Calls for more frequent application of the second-generation statistical methods such as structural equation modeling (SEM) have emerged in the field of management accounting recently. The aim of this article is to compare these statistical methods to the first-generation methods using the...

Predictive modeling focuses on iteratively trying various combinations and transformations of a set of variables to generate a decision rule that predicts outcomes for new observations. Although accounting researchers have demonstrated interest in predictive modeling, we identify a lack of...