In this paper, we empirically examine the capital budgeting process of a large multi-divisional firm and the implications of the dynamics that underlie this process. Although investment decisions are one of the most important decisions made by firms, relatively little is known about the capital...

In this study we examine whether increasing targets based on past performance information or on exogenous information affects employees' trade-off between short-term output and long-term investments differently. Both mechanism are supposed to increase long-term investments, while also achieving...

In this study, we ask: how does the intensity of internal competition for resources affect the communication of private information in an organization? Although competition between different divisions or units for resources is pervasive in many organizations, much of the accounting literature...

In this study I examine how sales channel selection influences the type of customers attracted to a service and how the different types of customers are associated with indirect costs that are not captured by traditional accounting systems. The choice of a sales channel to target customers is a...

In a laboratory experiment I investigate the role of perceived own ability in a multi-task setting with career concerns under fixed wages and under financial incentives with a higher weight on the task measured with noise. I find that in the absence of career concerns participants allocate...

In an environment where employees have the freedom to direct some time away from their day-to-day, routine tasks to work on creative endeavors, we examine whether nonbinding targets for the amount of time to spend (input target) and/or the amount of output to produce (output target) on the...

The practice of telecommuting has increased during recent years; however, the COVID-19 crisis has accelerated its development even further. Despite various opinions on telecommuting, many companies struggle to establish long-term telecommuting policies; additionally, causal evidence on its...

Periodic demand forecasts are the primary planning and coordination mechanism within organizations. Because most demand forecasts incorporate human judgment, they are subject to both unintentional error and intentional opportunistic bias. We examine whether a disaggregation of the forecast into...

Investment decisions are among the most important managerial decisions. The purpose of this study is to examine whether non-diagnostic information in investment decisions elicits a dilution effect such that decision outcomes deviate from a Net Present Value (NPV) assessment. We also answer the...

Experimental research on individual decision-making with respect to effort is an important stream in management accounting research. There are two different concepts to operate effort in laboratory experiments, real effort, where participants are asked to perform an experimental task and chosen...