Participative Budgeting and Managerial Performance*

Recent analytical and empirical research in budgeting has focused on conditions under which participation may or may not prove beneficial to the firm. The present study seeks to examine (in a budget setting) the impact on firm returns of managerial participation, private state information, and relative skill. Experimental results indicate a significant improvement in firm and managerial welfare across favorable and unfavorable private state information with budgetary participation. A significant interaction between the type of state information and participation is reported for managers but not firm returns. Finally, relative skill signals are shown to lead to improved managerial performance.     

THE EFFECTS OF DEGENERACY ON COST-COEFFICIENT RANGES AND AN ALGORITHM TO RESOLVE INTERPRETATION PROBLEMS

The problems of determining valid shadow prices and of performing a valid sensitivity analysis for managerial purposes are considered. For primal degenerate optima, earlier results on finding shadow prices are used to propose a clear and efficient method for finding valid cost-coefficient ranges. An example is used to demonstrate how managerial information can be obtained at degenerate optima.     

供应链中信息共享的管理激励研究

信息共享是供应链成功运营的关键,那么如何激励供应链上的成员进行信息共享,提出有效的激励机制成为这一问题的焦点.本文以一个两阶段供应链为研究对象,建立了多目标、多因素管理激励机制模型.研究结果表明通过建立良好的供应链信息共享条件及有效的信息共享管理激励机制,可以提高供应链的性能,实现供应链成员"双赢".     

Accounting information for managerial decision-making in shareholder management versus stakeholder management

With global challenges like climate change and, of course, the crisis of capital markets in the recent past stakeholder oriented management receives enhanced attention whereas shareholder value management is increasingly criticized for its undesirable external effects on stakeholders other than owners. Regardless of whether these criticisms are well founded or not, the question arises how accounting-related techniques for supporting managerial decision-making differ in shareholder and stakeholder value management. Accounting information can affect managerial decision-making in two ways: directly as input to decisions or indirectly by influencing the behavior of managers. This article reviews the contributions and limitations of information that prominent accounting-related techniques of shareholder management and stakeholder management provide for managerial decision-making. In a comparative perspective we find that the approaches in shareholder value management are much more advanced. In particular the two roles of information in shareholder value management are manifest in accounting-related techniques which are focused on increasing firm value. The value driver models or residual income-based performance measures may serve as examples. In comparison, accounting-related techniques to support managerial decision-making in stakeholder management are not as well advanced. So far we have approaches which concentrate on selective stakeholder groups and only partially address the multi-dimensionality of stakeholder value creation. From a conceptual perspective our findings indicate that stakeholder value creation requires a more integrated approach for answering the question whether stakeholder value is created or diminished. As a consequence, if stakeholder-orientation is taken seriously, the time has come to pay more attention to related accounting techniques.     

Does managerial ability influence the quality of financial reporting?

The purpose of this paper is to study the influence of managerial ability on the quality of their financial reporting. Using a large bank sample from nine different countries and for the time period 2004–2010, we expect that bank earnings quality and accounting conservatism increase with more able managers that disclose more accurate earnings and who report higher information about banks’ future earnings and cash flows.The results confirm that managerial abilities play a significant role in the quality of financial reporting in banks, and that capable bank managers are less likely to manage earnings opportunistically. This study is timely and relevant given the recent emphasis on earnings quality of banks over the last few years, and the criticisms of managerial abilities after the financial crisis. The evidence from this study can help standard-setters and regulators to better understand the business practices and accounting behavior of banks in the light of managerial abilities.     

董事会非正式层级与高管薪酬契约有效性

董事会治理是影响高管薪酬契约有效性的关键,已有研究主要从董事会结构层面展开,缺乏对董事会内部运作机制与高管薪酬契约有效性关系的具体分析。基于董事权威不平衡性的治理效应视角,系统考察了董事会非正式层级与高管薪酬契约有效性的逻辑关系及其作用机理,得出了一些具有重要价值的结论,主要包括:1.董事会非正式层级对高管薪酬业绩敏感性具有显著的负向调节作用,且主要体现在业绩下滑的样本公司中,表明董事会非正式层级对高管薪酬契约的影响主要体现在公平性和风险匹配性方面。2.只有当最高层级董事身份为独立董事时,董事会非正式层级对高管薪酬业绩敏感性具有显著的负向调节效应。3.董事会非正式层级增强了高管薪酬的行业和地区薪酬敏感性,进一步验证了董事会非正式层级的社会公平效应。论文的研究为从微观运作层面理解董事会治理和高管薪酬契约有效性提供一种新的视角和结论,对于优化董事会治理和提高高管薪酬契约有效性等均具有重要借鉴意义。     

Acquisition and Disclosure of Operational Information*

We study a firm's strategy for acquisition and disclosure of operational information by establishing linkages among information quality, managerial self‐interest, and production planning. We develop a multistage model in which a manager of a publicly traded firm first receives private information about the product demand and then uses it to make production and disclosure decisions. We consider two prevalent disclosure models employed in the accounting literature: all‐or‐nothing and cheap‐talk models. In the all‐or‐nothing model, it is assumed that any disclosure must be truthful, but the manager can strategically withhold information. We show that the manager commits to acquire the value‐added operational information if (i) the managerial self‐interest in the interim share price is low or (ii) the managerial self‐interest in the interim share price is high, but the fixed disclosure cost is either sufficiently low or sufficiently high. We demonstrate that the firm is better off if the production level is observable to the financial market because multidimensional signaling reduces costs. In the cheap‐talk model, we assume that the manager's disclosure may not be truthful. We show that the manager's incentive to acquire value‐added operational information increases along with the penalty cost for misleading investors. Therefore, a high penalty cost for misleading investors can encourage the manager to obtain more precise information, which in turn improves the firm's cash flow.     

Organizational Computing as a Facilitator of Operational and Managerial Decision Making: An Exploratory Study of Managers' Perceptions*

Much of the current knowledge pertaining to information technology (IT) and decision making is based on decades old technologies that revolved around a central computing function and application-specific systems. The purpose of this research is to examine the IT decision-making relationship within the emerging organizational computing (OC) environment permeated by spontaneous utilization of both application-and nonapplication-specific computing and communication technologies. Specifically, this study seeks to explore managers' perceptions of the emerging OC environment as a facilitator of their decision-making activities. To achieve a higher level of clarity than previous works, a two-dimensional research framework is developed with the IT dimension consisting of computing and communication, and the decision-making dimension differentiated between operational and managerial decisions. A survey instrument was constructed that measured the computing and communication dimensions of information technology use and their perceived effects upon operational and managerial decisions. The major findings of the study confirmed that managers recognize the value of general, nonapplication-specific information technologies in decision making, and that this recognition is highly associated with how intensively these information technologies are used. Additionally, it was found that the two dimensions of IT differ in their relationships to decision making, and that IT usage relates to managerial decisions differently than operational decisions. These study findings have significant implication for practice and research, especially in the context of information resource management in which the primary purpose of the IS function is the delivery of general information service to users rather than the development of specific IS applications.     

Environmental Factors,Managerial Processes,and Information Technology Investment Strategies

Although significant research attention has been directed at understanding the value of information technology (IT) investments for firms, very little attention has been paid to understand the IT investment behavior of firms. This article seeks to fill this void. We introduce the concept of IT investment strategy, defined by dimensions of intensity and proactiveness, to characterize the IT investment behavior of firms. Synthesizing the environmental deterministic and strategic choice perspectives of a firm's strategic decision making, we examine the effects of environmental factors, managerial processes, and the interplay between them on IT investment strategy. Specifically, we examine the impact of environmental factors such as industry clockspeed and information intensity on IT investment strategy. We also incorporate the strategic choice perspective to argue that managerial processes such as frequent chief executive officer—chief information officer communications and collective information systems planning play a critical role in shaping the firm's IT investment strategy. The empirical results show that the environmental variables are related to IT investment strategy. Besides, managerial processes serve as a means to understand the environment and thus moderate the relationships between the environmental variables and the various facets of IT investment strategy. The conceptualization of IT investment strategy and the focus on both environmental determinism and strategic choice should enrich our understanding of firms’ IT investing behavior.     

Organizational processes as determinants of information value

Research on the determinants of information value has not explicitly considered whether the type of organizational process participated in by a decisionmaker has an effect on his/her evaluation of information on which the decision is based. Much important managerial activity in organizations is carried on through formal or informal processes such as budgeting and strategic planning. If process differences are significant determinants of the way in which information is valued, the inclusion of this element into the framework for thinking in this area might add considerably to our ability to prescribe appropriate managerial processes as well as to our understanding of differences in the outcomes of decision processes. This empirical study suggests that organizational process type does have a significant effect on the determination of information value in the context of two generic process types (individual, group) that were evaluated in a strategic decisionmaking context.     

基于产品创新的管理集成及其实施结构体系研究

本文简单地概括了国内外产品创新中管理集成的研究现状,分析了产品创新中管理集成的内涵,揭示了管理集成与信息集成、过程集成和企业集成等相关概念之间的区别和联系,提出了基于产品创新的管理集成实施的结构体系,指出这个结构体系是由核心层、使能层和技术支撑层构成的,并对其内容进行了详细的阐述。     

BENCHMARKING MANUFACTURING PERFORMANCE IN THE SEMICONDUCTOR INDUSTRY

A methodology for benchmarking manufacturing practices in the worldwide semiconductor industry is presented. Several metrics for measuring semiconductor manufacturing performance are defined and discussed. Interviews conducted during site visits are used to identify the managerial, technical, and organizational practices underlying superior metric performance. Multivariate statistical analyses of the performance metric data indicate that these performance metrics measure independent aspects of performance and expose significant performance differences among fabs.     

‘Bureaucracy‐lite’ and Continuities in Managerial Work

This paper questions three frequently asserted, interrelated claims about developments in management: that centralized, regulated bureaucratic organizations characterized by hierarchy and rules are inevitably giving way to decentralized and empowered post‐bureaucratic organizations characterized by internal networks and an internal market; that, as a consequence, the traditional managerial role of command and control is being superseded by one of facilitation and coordination; and that, in turn, managerial work as routine administration of work processes is being supplanted by the ‘new managerial work’ of non‐routine leadership and entrepreneurship. It is argued that these claims often rest on caricatures of bureaucracy and network organization and are neither new nor well supported by evidence. Against these claims, the paper adduces case‐study evidence which shows that, despite claims about ‘decentralization’ and ‘empowerment’, organizational change may entail not a radical shift to network organization, but more limited change to a different form of bureaucracy in which hierarchy and rules have been retained but in an attenuated and sharper form –‘bureaucracy‐lite’. Consequently, managerial roles continue to be defined in terms of individual responsibility and vertical accountability for an organizational sub‐unit, and managerial work continues to be preoccupied with monitoring and maintaining work processes, routine direction and control of staff and processing information in order to deal with the ambiguities inherent in the dimensions of managerial ‘responsibility’.     

How to better identify the true managerial performance: State of the art using DEA

Our motivation is to detail a potential improvement on the three-stage analysis published by Fried et al. [Accounting for environmental effects and statistical noise in data envelopment analysis. Journal of Productivity Analysis 2002;17:157–74] that can distinguish true performers from those that may be advantaged by favourable environments or measurement errors. The method starts with data envelopment analysis (DEA), and continues with stochastic frontier analysis to explain the variation in organisational performance in terms of the operating environment, statistical noise and managerial efficiency. It concludes with DEA again using adjusted data to reveal a measure of performance based on management efficiency only. Our proposed contributions include (i) a comprehensive approach where total input and output slacks are identified simultaneously for non-radial inefficiencies before levelling the playing field, (ii) identifying percent adjustments attributable to the environment and statistical noise, and (iii) using a fully units-invariant DEA model.     

基于SMA信息抽取的主题诊断研究

从和谐主题的提出与研究现状入手,在建立策略性管理活动描述文本集合并从中抽取管理任务信息和管理问题信息的基础上,为了实现对管理领域中事实主题的识别与评价,本研究综合分析了从文本表示、雏数约减到聚类分析以及数据概化的思想及其方法技术,并通过引入W正态分布检验,完成了对所研究问题的解决方案设计。实证分析结果验证了本方法对于解决组织管理中事实主题诊断问题的有效性和可行性。     

Does Cultural Difference Affect Investment–Cash Flow Sensitivity? Evidence from OECD Countries

We investigate the influence of national culture on corporate investment–cash flow sensitivity. We conjecture that national culture shapes managerial perceptions of information asymmetry and agency problems, thus impacting the investment–cash flow relationship. We document empirical evidence in support of our claim. By linking the investment–cash flow sensitivity to cultural differences, our findings show that, while collectivism has an attenuating influence, uncertainty avoidance, power distance and masculinity have a reinforcing effect on the relationship between cash flow and investment. Our results hold for a sample of 205,268 firm‐years across 24 OECD countries between 1990 and 2017, and are robust after accounting for alternative statistical approaches, sample compositions and measures of cultural dimensions, along with controls for institutional and governmental factors. In addition, by decomposing cash flow into uses and sources of funds in a dynamic multi‐equation model, where firms make financing and investment decisions jointly subject to the constraint that sources must equal uses of cash, we find that national culture shapes how firms react to changes in cash flow.     

Technological forecasting as a guide for managerial planning

The author discusses the limitations of statistical forecasting as a guide to managerial planning, with specific reference to technological and market changes in the glass industry. He advocates the use of a Forecast Adjustment Matrix as a framework for identifying marketing and technological factors which might produce significant deviations from established trends. Finally, he suggests that the analysis and adjustment of technological and market trends should be made periodically. The whole technological forecasting operation should be formalized and it should be made the specific responsibility of one organizational unit within the company.     

The Role of Operational Interdependence and Supervisory Experience on Management Assessments of Resource Planning Systems

Greater interdependence among workers and activities not only increases the need for internal communication, but it also imposes complications and barriers to effective information exchange. Intraorganizational communication capabilities of certain information systems can help overcome these barriers. However, the extent to which certain systems are promoted as communication tools depends largely on management's interpretation of their usefulness, which in turn may be largely dependent on operational context and managerial experience. We use a controlled experimental approach to study how these issues interact to impact managerial assessments of resource planning systems. Results show that managers value the communication capabilities of resource planning systems more so in highly task‐interdependent contexts and that these assessments are still more positive among managers with greater supervisory experience. As a result, these findings pose direct implications regarding the management support of technology use.     

DEGENERACY AND THE (MIS)INTERPRETATION OF SENSITIVITY ANALYSIS IN LINEAR PROGRAMMING

Under conditions of degeneracy, sensitivity analysis information such as cost and right-hand-side ranges, which are produced by standard linear programming procedures used in commercial codes, can be misleading. From a managerial perspective, the interpretation of such information can be erroneous. In this paper we present these problems, explain their occurence with elementary examples, and discuss procedures for their resolution.     

Financial Distress Prediction Models: A Review of Their Usefulness1

Throughout the 1980s there has been continued interest in developing financial distress prediction models for both large and small firms. There has, however, been no survey of this literature directed towards assessing the uses and limitations of these models in a management context. The purpose of the paper is, therefore, to indicate the managerial uses and limitations associated with adopting financial distress prediction models. The paper achieves this end by considering in section two the current financial distress prediction techniques and their limitations. Section three examines the relevance of the predicted event (usually actual failure), the usefulness of multi-outcome models and the appropriateness of various sample selection methods. A review of the range and adequacy of the financial and non-financial information used to construct predictive models forms the basis of the fourth section and is followed in section five by a review of the validity of the claims made on behalf of their predictive accuracy. The following section examines the efficacy of other methods of predicting distress, and reviews the ‘man versus model’ literature concerning the relative abilities of unaided human decision-makers and statistical models. The final section offers conclusions and suggests where future work might be directed.