Middle East countries have begun to implement economic reforms to stimulate private investment, promote economic growth and support the transition to market economy. Although, it is difficult to define the direct impact of the accounting system reform on economic transformation, as there are many other conditions that have influence on the transition process. However, with the central position ...

In this paper we introduce a new methodology to test market efficiency and to assess the performance of the most widely accepted asset pricing models. We use this methodology to test the semi-strong form of market efficiency in the context of publicly available accounting information. Instead of testing for a single accounting-based firm characteristic that can generate abnormal excess returns ...

Does option-based compensation have a causal influence on payout policy? To address this question we examine the adoption of mandatory expensing of stock options (via accounting standard FAS123R), a plausible exogenous shock to the use of option-based compensation. As FAS123R applies to all firms, our identification strategy exploits the fact that the reduction in option-based compensation in r...

This article reports the results of an experimental analysis of the impact of MIS design variables on managers" evaluations of subordinates" performances. The experiment involved examining whether different ways of reporting a specific standard cost accounting situation resulted in differences in managers’ evaluations. When actual costs differed significantly from standard, it was found that th...

How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development accounting literature by describing a nonparametric upper bound on the increase in output that can be generated by more schooling. The advantage of our approach is that the upper bound is valid for any number of schooling levels with arbitrary patterns of subst...

Poor quality information costs businesses trillions of dollars. Yet a foundational model influencing the quality of financial reporting information – the United States’ accounting model of information usefulness is still not empirically validated. In the near future this model is set to be incorporated into an international standard, globally affecting professional decisions about the character...

The Private Finance Initiative (PFI) in the U.K. has been the subject of considerable interest in government, professional and academic literature. This reflects its importance as one of the classic forms of Public Private Partnership, its adoption in other jurisdictions, the scale of infrastructure investment under PFI legislation and the extent of controversy that has accompanied its developm...

Information technology (IT) is changing everjrthing. It represents a new, post-industrial paradigm of wealth creation that is replacing the indxistrial paradigm and is profbiindly changing the way business is done. Becavise of these changes in business, the decisions that management must make are very different fix>m former decisions. If the purpose of accounting information is to support busin...

The integrated product mix-outsourcing optimization is a major problem in manufacturing enterprise. Generally, heuristic or meta-heuristic solution approaches are used to optimize such problems. Heuristic approaches for these problems include Theory of Constraints (TOC) and Standard Accounting. Sometimes heuristic approaches are inefficient especially in large problems and instead, in these cas...

We use incomplete contracts theory to explain the inclusion or exclusion of changes to GAAP based on which debt covenants are written. We posit that GAAP is often incomplete with respect to unanticipated future developments (innovations), which can lead to post contractual opportunism and thus destroy ex ante incentives. We argue that the choice to include GAAP changes depends on the effectiven...