This paper will look at management control from the viewpoint of enhancing human cooperation within an organization. As control is about human behavior a perspective on control will be founded on a view on human agency. A general framework of cooperative control will be built based on two-stage...

This paper studies the effect of an internal control problem on a firm’s disclosure policy where firms compete in non-cooperative investment game, with each firm deciding to invest in its current technology or to invest in a non-proprietary innovation. By adopting the innovation, a firm earns...

This paper examines the role of multiple measures of performance in a principal-agent model incorporating both moral hazard and adverse selection. The outcome of interest to the principal depends stochastically on the agent’s unobservable ability and effort, while the principal implements a...

This study explores how the determinants of financial, nonfinancial and behavioural controls vary in foreign subsidiary manager performance evaluations. Possible impacts of the following factors are analyzed: extent of geographical dispersion, decentralization and perceived environmental...

A case study of the implementation of the balanced scorecard in a large local government authority is reported. Based on interview data, the factors that were perceived by senior managers to be important to the success or failure of the implementation are analysed. It is determined that...

Using car dealership data, we examine the relevance of forward-looking (FL) and contemporaneous (CO) measures for pay-for-performance incentives (bonus, annual raise, promotions) for long-horizon employees. Economic models suggest that while contracts with FL performance measures mitigates the...

In order to improve the organizational performance of governmental entities, there has been a tendency in many countries to introduce management reforms that are believed to prevail in private companies. The term 'NPM' (New Public Management) was coined to label these reforms. NPM stresses -...

Accounting with its arcane language and rules is a subject often feared and reviled by MBA students. While the process of producing accounting information might indeed contribute to this reputation, framed differently, MBA students easily see the role accounting plays in achieving strategic...

This paper has two aims. On the one hand, it adds to a growing but still sparse literature on the work practices of the leader of the accounting and finance function or the Chief Financial Officer (CFO). How does one enact being a CFO? On the other, this paper also addresses a curiosity in the...

Despite its critical importance in the theory of the firm, marginal cost is unobservable in most production settings. Most cost accounting practices substitute average cost estimates for the unobservable marginal cost; moreover, some cost accounting measures include fixed costs as a component of...