Two seminal accounting studies on creativity and incentives find that output creativity is insensitive to creative effort, i.e. trying harder to be creative. These studies compare a one-dimensional quantity contract that measures only output quantity and a multi-dimensional creativity-weighted...

Purpose: Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost consideration...

I summarize Dr. James Hunton’s research misconduct and then provide economics-based analysis related to some accounting community responses to his misconduct. One change made by some accounting journals was to introduce, highlight, or reinforce policies that spread responsibility for the...

Managers must constantly scan a sea of new information and judge (1) if this information is relevant to evaluating the firm’s strategy (i.e. information relevance judgments), and (2) if this information suggests the firm’s strategy is appropriate or inappropriate (i.e. strategy...

Ethical dilemmas arise when one must decide between conflicting ethical imperatives. One potential ethical dilemma is a manager's decision of whether to engage in corporate social responsibility (CSR) activities. This decision could pit the ethical imperative of honoring unwritten obligations to...

Purpose: Managerial accounting education generally insists that managers should never consider sunk costs. This suggestion seems inconsistent with a common mode of thinking about future rewards: quasi-hyperbolic discounting. This paper aims to explore the conflict between sunk cost...