A translog function is specified to represent the relation between revenue and human resource inputs in public accounting firms. Estimation of the model using a balanced panel of annual data for 64 large CPA firms for the period 1995-1999 indicates that increasing returns to scale prevail in the...

We investigate the impact of supplemental information displays on the quality of decisions made using a common strategic performance measurement system, the Balanced Scorecard. A distinguishing feature of the balanced scorecard (BSC) is the number and diversity of its metrics. To effectively...

Linearity and separability assumptions are pervasive in most not-for-profit governance and performance measurement systems. In this paper, we employ both parametric and nonparametric econometric methodologies to test the linearity and separability assumptions using data collected from the...

Line item budgeting is a widely used managerial control device in governmental and nonprofit organizations. In this study, we explicitly model the relationship between input quantities and their prices with particular focus on the line item budgeting assumption of input separability, i.e.,...

This paper presents a new method for estimating standards. Prior accounting research suggests the need for flexibility in setting standards in order to allow managers to make trade-offs between efficiency and attainability, and also between inputs with different relative prices to minimize cost....

This paper examines whether and how foreign institutional donors play a monitoring role in the nonprofit sector. By analyzing 2,567 Chinese nonprofit foundations from 2005 to 2014, we find that foundations with foreign institutional donors are associated with higher quality reporting. The effect...

We examine how client product similarity within an auditor’s portfolio affects audit efficiency and pricing decisions. Using a unique set of intra-portfolio client-level data, we find that clients with product offerings more similar to those of other clients in the auditor’s portfolio are...

This study examines how organized labor affects selling, general, and administrative (SG&A) cost behavior. We find that labor cost stickiness is higher for firms facing stronger unions, but the stickiness of SG&A costs is lower. This is consistent with an argument that managers’ discretionary...

This study examines how organized labor affects selling, general, and administrative (SG&A) cost behavior. Human capital is emerging as firms’ most valuable asset, and we further the understanding of the interaction between employees and SG&A cost behavior. We predict and find that labor cost...