Cookies?
Library Header Image
LSE Research Online LSE Library Services

On the optimal relation between the properties of managerial and financial reporting systems

Hemmer, T. and Labro, Eva (2008) On the optimal relation between the properties of managerial and financial reporting systems. Journal of Accounting Research, 46 (5). pp. 1209-1240. ISSN 0021-8456

Full text not available from this repository.

Abstract

We develop a theoretical model of the firm that links properties (stewardship vs. valuation focus) of financial reporting regimes with the informational properties of optimal managerial accounting systems. We show that, contrary to the standard textbook proposition, properties of management and financial accounting systems are not independent. We provide an explicit connection between (somewhat) exogenous and observable properties of a firm's information system and the quality of the economic decisions made by its manager(s). As the latter can also be inferred from publicly available data, our theory generates new opportunities for empirical managerial accounting research on large non-proprietary samples. Further, by being able to identify enhanced performance due to improved managerial accounting information, our theory provides opportunities to gain a better understanding of the link between particular managerial accounting practices and the quality of the information produced.

Item Type: Article
Official URL: http://www.blackwellpublishing.com/journals/jar/
Additional Information: © 2008 The Institute of Professional Accounting, University of Chicago
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce > HF5601 Accounting
Sets: Research centres and groups > Managerial Economics and Strategy Group
Departments > Management
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 29 Aug 2008 09:54
URL: http://eprints.lse.ac.uk/21205/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only