This paper compares and contrasts Economic Value Added (EVA) and Intellectual Capital (IC) as two technologies of managing oriented towards encouraging growth. The analysis suggests that EVA and IC contrast greatly. EVA is a financial management system based on radical delegation and...

Many companies are undergoing organizational changes encompassing innovative approaches to organizing production processes, restructuring work practices and developing new planning and control mechanisms. This paper explores the role that management accounting played in the development of...

It is now common place for management commentators to argue that Western assemblers should learn from and attempt to replicate Japanese practices. One of these key practices relates to the way in which Japanese assemblers work closely with subcontractors to cooperate on design and development...

In a recent report into new research directions in management accounting a geographically and philosophically diverse group of eight scholars argued for a convergence of different and complementary approaches to the subject. They concluded that, quot;[n]ew directions and advances in management...

In this paper, I extend the organizational design literature by examining how the delegation choice is affected by the ability to resolve the incentive problem caused by this delegation. Based on the seminal papers by Grossman and Hart (1986) and Holmstrom and Milgrom (1994), I argue that the...

In this paper I use a principal-agent framework to explore the relation between the hierarchical structure of firms and the accounting information technologies available to them. I allow the principal to choose the number of layers in the firm, the number of agents in each layer, and the...

Sales decreases affect earnings more than sales increases because of cost stickiness. We hypothesize that this correlated omitted variable constitutes a confounding effect in standard asymmetric timeliness models. Controlling for a piecewise linear effect of sales changes in these models...

The corporate governance issue has received significant attention recently at both the academic and the regulatory levels. However, there is still no generally accepted definition of the term, consensus about what it means or common system of ensuring good practice. For the emerging economies of...

Vertical integration is often proposed as a way to resolve hold-up problems in connection with specific investments. However, decision-makers are generally compensated based on divisional (not firm-wide) profit. Hence, hold-up problems are bound to resurface in integrated firms. This paper...

Vertical integration is often proposed as a way to resolve hold-up problems, ignoring the empirical fact that division managers tend to maximize divisional (not firmwide) profit when investing. This paper develops a model with asymmetric information at the bargaining stage and investment returns...