Contemporary studies on cost behaviour find that costs increase more with activity increases than they decrease in response to equivalent activity decreases. This sticky cost behaviour contradicts the traditional model which assumes that costs behave symmetrically for activity increases and...

This is the first chapter of our book Principles of Cash Flow Valuation. It is an overview of what we present in the book. In this chapter, we present an informal introduction to the basic concepts and ideas in market-based cash flow valuation. The simplified exposition will provide sufficient...

This study uses a homogeneous database of cross-sectional qualitative and quantitative data to analyze the relative performance of Just-in-time and non-JIT plants operating in the auto-parts and electronic components manufacturing industries. The multivariate tests show that JIT plants use...

The findings of a field study concerned with appraising capital budgeting process implications arising from different owner/operator structure employed in the hotel industry are reported. Dimensions of conflict that can arise between hotel operators and owners are examined. Consistent with...

This paper examines a multiperiod principal-agent model in which a divisional manager has superior information regarding the profitability of an investment project available to his division. The manager also contributes to the periodic operating cash flows of his division through personally...

Information relevance advisory services offer growth opportunities for accountants in CPA firms, but we know little about the types of knowledge needed to provide high quality advice. In a two-stage experiment, accountants with different management and public accounting experience (that we...

We show that if taxable income were linked to accounting income, there will exist an automatic safeguard against manipulation of earnings within the analyzed framework. Separating taxable income from accounting income will remove this self-controlled mechanism, and accordingly create a need for...

Integrating financial accounting and management accounting is already a well-established practice in large businesses, which in France took up this type of approach in the mid-1980s. In small and medium-sized companies, however, separation is generally the rule. Priority is given to financial...

Many researchers have claimed that costing systems that provide materially more accurate or precise cost reports have a strict value-enhancing effect on decisions (i.e., Cooper 1988, 1995; Cooper and Kaplan 1991; Christensen and Sharp 1994; Rogers, Comstock and Pritz 1994; Swenson 1995; Gupta and King 1997)....