Researchers often use non-linear distributional properties of accounting variables (e.g., standard deviation of demand conditional on managers’ information) to measure economic constructs like demand uncertainty. To model these distributional properties conditional on explanatory variables X,...

Earnings management research often uses discretionary accruals from Jones-type models. These models assume a linear relation between sales changes and accruals. However, we predict and find that sales changes have a non-linear asymmetric effect on accruals through managers' operating decisions....

We examine the relation between demand uncertainty and firms' production outsourcing decisions. Contrary to the traditional view on make-or-buy decisions in management accounting textbooks, we predict that demand uncertainty deters outsourcing by a manufacturer from a supplier. Building on...

Recent research documents the empirical phenomenon of ldquo;sticky costsrdquo; and attributes it to a theory of deliberate managerial decisions in the presence of adjustment costs. We refine this theoretical explanation and show that it gives rise to a more complex pattern of asymmetric cost...