Managers use management accounting and control systems (MACS) to monitor and detect deviations from earnings targets. We examine an unexplored side of MACS: its effects on earnings management. We predict and find evidence that managers interactively use MACS to focus the attention of the whole...

Previous literature reveals contradictory results when evaluating the effect of outsourcing on organizational performance. In attempting to explain this contradiction, the existing research seems to have overlooked potential intermediate variables such as management accounting and control...