This study examines the relationship between financial risk and cost behavior both theoretically and empirically. We suggest that financial risk will affect the degree of discretion of managerial resource adjustment decisions by its impacts on financial flexibility and the cost of capital. As...

This paper examined some of the factors that influence the use of quality costs in TQM (Total Quality Management) environments by using survey data collected from Japanese manufacturing firms. The management accounting and quality management literatures suggest that TQM requires a greater...

We examine the effect of mandated measurement and peer disclosure of new information on the persistence of performance improvements in a setting without performance incentives. Value of information (VOI) theory posits that information can improve the accuracy of posterior beliefs and thereby...