We examine the realism of the assumption of self-interested opportunism in agency theory. We place subjects into manager/producer pairs and set parameters so that the producer extracts the highest share of residual earnings from the manager by setting the budget at zero (100% slack) and...

Negotiations between buyers and suppliers that require sharing cost details to identify profitable relationship specific investments often fail and result in hold-ups. Based on inequity aversion, strategic uncertainty, and risk dominance criteria, we expect negotiators to be more reluctant to...

This paper uses an experiment to examine whether involvement in scorecard implementation can mitigate the effects of motivated reasoning that occur when the scorecard is framed as a causal chain rather than merely as a balanced set of measures. Psychological research on motivated reasoning...

This paper contributes to the recent levers of control (LOC) literature on the relationships between innovation and management accounting and control systems (MACS) by emphasising the importance of the choice by which individual MACS are selected for interactive use. Using data from a...

Though the benefits of information exchange across firms in a value chain have increased and the costs of information processing have gone down, there are only some cases where such systems have been implemented. In this paper, we develop a stylized model of a value chain that consists of a...

Managers often make judgments about cost-driver and profit-driver relations using subjective analysis rather than statistical analysis of accounting data. We provide theory-consistent experiment evidence that, even when the strength and temporal contiguity of the relation between financial...

This paper contributes to the earlier management accounting literature on the framework of Levers of Control by investigating the role of interactive control systems in competitive dynamics of businesses. More specifically, the study focuses on the interactive use of management control systems...

This paper deals with some aspects of use of accounting systems in the context of small firms. Some relevant topics from the theoretical background are discussed synthetically. After, we present some results of a research over a group of small companies from South of Brazil. We concluded that...

Supply chain management has emerged as one of the more important topics in managerial accounting. The importance of information exchange between parties involved in supply chains has also been well documented. By addressing the value of audits in this setting, this theoretical paper serves to...

There has been increasing interest in firms in which workers strongly identify with their firm's success. It would seem apparent that such identification by workers should be considered as an integral element of the firm's control systems. However, much of the literature on the myriad forms of...