This paper investigates the relative performance of absorption versus direct costing procedures. Traditionally absorption costing procedures have been defended on the basis of them acting as a proxy for hard to measure opportunity costs. We question the validity of this traditional defence by...

There are serious concerns in some Western countries that methods should be found to resolve what is commonly referred to as the auditing profession's liability crisis. A number of legislative based proposals to limit auditors' liability have been suggested. However, anxiety has been voiced...

An important category of costs that management need to plan for and control are the costs associated with the purchase of direct inputs. Traditional operations management methodologies model this problem as requiring management to direct attention to the trade-off between inventory holding costs...

In this research the following timing problem is considered. An organization is assumed to face stochastic prices for an input whose expected price has positive drift. It is assumed that one possibility available to management would be to completely hedge against price uncertainty by fixing the...

This paper tests how informed investors with local expertise can affect cross-border deal success using a comprehensive dataset of corporate acquirers' share registers. We posit that deals in which long-term investors have a high level of expertise in the target firm's region are more likely to...

If firms disclose the use of independent valuation experts to assess the magnitude of goodwill impairments should investors rationally condition their values on that disclosure? This research shows that firms that disclose use of an independent valuation expert are more likely to report a higher...

We study how distress-oriented hedge funds (vulture funds) play an important role in the fresh start valuation of firms emerging from Chapter 11 reorganization. We find that loan-to-own vultures acquire debt positions of the distressed firm that grant dominant power in the bankruptcy...

We investigate the trading and yield effects of covenant-lite (cov-lite) high-yield bond contracts, which have a restricted (lite) set of covenants. The excluded covenants often are those that use accounting performance measures. Although much research has focused on the potential benefits of...