We assert that some forms of opportunistic behavior within the organization are relatively transparent and, therefore, public in nature. Further, while organizations can tightly control such public opportunism, it may not be optimal for them to do so in the presence of private opportunism. To...

This paper traces the adoption process by top management of a performance evaluation system initiated by the financial controllers at the Research and Development site of leading multinational company. The research puts forward that the success of the change efforts depends on the nature of...

The analysis in this paper extends the single-agent/multi-task LEN model in Feltham and Xie (1994) to a multi-agent/multi-task context. A key feature of the paper is that we consider centralized contracting with both full and limited commitment. The former refers to settings in which the...

Research in budgeting suggests that subordinates may exhibit economically significant degrees of honesty, in spite of pecuniary incentives to do otherwise. This study continues the exploration of honesty in budgeting along two dimensions. First, unlike prior experiments, we measure the...

Purpose: This study examines performance evaluation measures across private sector companies in an Egyptian context and pinpoints obstacles that may limit the adoption of the balanced scorecard (BSC). Methodology/Approach: Uses a questionnaire that was mailed to a sample of 150 companies listed...

Lipton has about 50 branded product lines, each of which has a product-line income statement. For many years, the company had used trading profit as a key measure of performance; in recent years, however, other measures have been used, and now a radically different product-line Pamp;L has been...

The setting of this case is the Recession of 1980. G. Wilson amp; Co. is a job shop that gets business by submitting the low bid. Robert Monroe, the controller, has been doing a trial run of direct costing. The case provides financial information for six months under both direct costing and...

When performance measures are used for evaluation purposes, agents have some incentives to learn how their actions affect these measures. We show that the use of imperfect performance measures can cause an agent to devote too many resources (too much effort) to acquiring information. Doing so...

The financing and capital budgeting decisions of the multinational are distorted by factors including barriers to financial flows such as exchange controls, different national tax systems, political risks, international capital market segmentation, foreign exchange risks and the organizational...

This article examines the quot;journeyquot; of management accounting education over the past 50 years, evaluates the state of the field today, and presents my personal observations about teaching approaches. I observe that we have seen a substantial addition of management accounting courses to...