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....

The Sarbanes-Oxley Act (SOX) provides a natural experiment for examining how stock ownership and executive pay structure adapt to a change in regulatory environment. Using annual compensation data of Samp;P 1500 firms in 1994-2005, we examine the impact of SOX on stock ownership and...

In this study, based on the reasoning that financial considerations in influence investment patterns within the context of a network industry, we evaluate the effects of lower access prices and cross subsidization on investments in bandwidth-expanding technology by local exchange carriers in the...

We examine how suppliers' relationship-specific cost structure decisions affect future performance. We argue that suppliers can avoid risk by choosing more flexible cost structures (less fixed-to-variable costs) or commit resources by choosing more rigid cost structures (more fixed-to-variable...