In this study, we ask: how does the intensity of internal competition for resources affect the communication of private information in an organization? Although competition between different divisions or units for resources is pervasive in many organizations, much of the accounting literature...

Errors in estimated product costs often lead firms to win business that is unprofitable, because firms are more likely to win business when underestimated product costs lead them to bid below actual cost (Cooper et al. 1992; Stalk and Lachenauer 2004; Hilton 2005). Feedback from repeated competitive...

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...