We examine airlines' pricing behavior with respect to fuel cost fluctuations. Managerial accounting “cost-plus” pricing models assume that a firm would adjust selling prices to “pass through” an increase or decrease in the costs of inputs. We find some evidence of airline pricing power...

In this paper, we offer evidence that disclosure of corporate social responsibility (CSR) in the 10-K provides information about firms' competitive advantages. We create a textual measure of CSR disclosure that aggregates CSR keywords found in 10-Ks. We measure firms' competitive advantages by...

This paper examines determinants of sticky cost behavior (asymmetric cost changes in response to revenue increases and decreases). Cost accounting researchers have examined sticky costs to gain insights about management capacity decisions as demand fluctuates. The majority of the extant...

This paper examines whether detail and its verifiability serve as indicators of strategy effectiveness and provide sources of credibility in voluntary qualitative disclosure. In an archival study, utilizing a difference-in-difference research design, we find that firms which introduce customer...

Using a comprehensive sample of U.S. non-profit hospitals from 2011 to 2015, we examine the effects of state community benefits regulation (CBR) on the amount of charity care provided by and the operational efficiency of U.S. non-profit hospitals. First, we document that, under such regulations,...

We examine how managers' consideration of a future promotion decision can influence their subjective evaluation of workers' past job performance as well as their subsequent promotion decision. We predict that whether such effects manifest depends on the rating granularity (i.e., the number of...

A recent FASB standard requires an entity's management to assess the entity's ability to continue as a going concern and disclose substantial doubt about such. In contextualized experiments wherein the entity's auditor does not issue a going concern opinion and the entity subsequently fails, we...

Technological advancements have greatly improved the ability of management information systems to gather, compile, and provide relative performance information (RPI). Many of these systems are capable of providing feedback on demand, either at the discretion of managers or employees. We use an...

This study examines how nonprofessional equity investors value variations in audit quality at different levels of audit clients’ pre-audit financial reporting quality. Using source credibility theory, we predict that nonprofessional investors will value the greater reduction in information...

Managers often encourage employee effort by incentivizing employees to achieve performance targets. For some work tasks, such as those that involve quality standards or creativity, greater effort does not, or is not perceived as, resulting in increased employee performance outcomes. This paper...