A well-known implication of microeconomic theory is that sunk costs should have no effect on decision making. We test this hypothesis with a human-subjects experiment. Students recruited from graduate business courses, with an average of over six years of work experience, played the role of...

While the popular press has documented Chief Financial Officer (CFO) role expansion into traditional operations functions, recent research suggests that time spent on non-core CFO activities harms financial reporting quality. We examine the operational acumen of CFOs and the potential negative...