Managers often make judgments about cost-driver and profit-driver relations using subjective analysis rather than statistical analysis of accounting data. We provide theory-consistent experiment evidence that, even when the strength and temporal contiguity of the relation between financial...

This study shows experimentally that when individuals use information on intangibles expenditures to predict future profits, expensing (versus capitalizing) the expenditures significantly reduces the accuracy, consistency, consensus, and self-insight of individuals' subjective profit...

This paper develops the tests a standard-based control system model which consists of three interrelated controls-participative standard setting, standard-based incentives, and standard tightness-as well as selected antecedents (task variety, task analyzability, information asymmetry) and...

Recent shifts in audit practice have dprovided more substantive and pervasive roles for specialized industry knowledge (e.g., see Bell et al. [1997]). Specifically, most of the largest firms now are structured along industry lines and designate most, if not all, of their auditors as industry...

I provide a perspective on four questions based on Management Accounting: European Perspectives edited by Al Bhimani (1996). First, seven factors are identified as having shaped management accounting practice in European nations - academics, education, government, professional associations,...

This study provides theory and field evidence on the social process of hardening soft accounting information to make it persuasive for planning organizational change. Accounting information intended to support organizational change is often soft, that is, there is lack of interpersonal agreement...