Objective – The context strategy as process and strategy as content have significant impact to the correlation between strategy and management accounting. In the context strategy as process, this paper aims to investigate the role of management accounting to performance through the choice of...

A key principle of financial reporting is that substance matters, not form. This is how auditors ensure that a firm will be viable in the future. The authors provide a checklist of goals that an organization should examine in order to determine whether it is investing in the long-run rather than...

Previous studies of the impact of M&A on performance have employed a range of measures of “profitability” or “rate of return”. Sometimes they have provided little in the way of rationalization; and sometimes the most appropriate measures have not been deployed for testing the chosen...

Using the procedures stipulated by the grounded theory, this study reports the findings of in-depth semi-structured interviews with five owners-managers of small and medium sized enterprises (SMEs)on how performance is being measured. The findings reveal that the owners-managers use a hybrid...

It is challenging to design appropriate incentives for ambidextrous work settings in which individuals have to perform well on both exploitative routine tasks and explorative non-routine tasks simultaneously. The present study builds on Hecht et al. (2012) and examines spillovers from...

We demonstrate analytically and illustrate with examples that the conventional measures of the residual operating income such as the Economic Value Added (EVA) are biased by design and so may yield a misleading assessment of financial performance. Fundamentally, the magnitude of the measurement...

This study investigates how adopting new performance measures affects the decision process through which supervisors make subjective adjustments. In our setting, the Chinese government substituted economic value added (EVA) for return on equity (ROE) in the performance score formula it uses to...

We conduct a laboratory experiment to examine whether the provision of detailed relative performance information (i.e., information about the specific performance levels of peers) affects employee performance. We also investigate how – if at all – explicit ranking of performance levels...

This paper provides an overview of empirical findings on how Relative Performance Information (RPI) affects employee performance through various facets of behavior. Additionally, the review identifies future research opportunities. It moreover contains a systematic analysis of the literature...

This study examines the effect of relative performance evaluation (RPE) on firm performance and risk-taking behavior. Agency theory suggests that RPE use in executive compensation plans improves risk sharing and strengthens incentive alignment when firm performance is exposed to common shocks. I...