Quotation Kopel, Michael, Riegler, Christian, Schneider, Georg. 2019. Providing Managerial Accounting Information in the Presence of a Supplier. European Accounting Review.


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Abstract

This paper identifies a novel effect which is crucial for the design of a management accounting information system. In contrast to prior literature, we explicitly model the firm's relationship to a supplier. We show that in addition to the previously identified trade-off – benefits of more information versus indirect or direct (agency) costs of information acquisition – another effect occurs: the input price effect. This effect influences the optimal design of the management accounting information system and changes the regimes where information acquisition is optimal for the principal. Also, in case of endogenous input prices we demonstrate that – perhaps surprisingly – paying an information rent to the agent can be beneficial because it works as a commitment towards an over-charging supplier to exploit the input price effect.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Accounting Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-A, WH-A
Language English
Title Providing Managerial Accounting Information in the Presence of a Supplier
Year 2019
Reviewed? Y
URL https://www.tandfonline.com/doi/full/10.1080/09638180.2019.1694955?scroll=top&needAccess=true
DOI https://doi.org/10.1080/09638180.2019.1694955
Open Access Y
Open Access Link https://www.tandfonline.com/doi/full/10.1080/09638180.2019.1694955

Associations

People
Riegler, Christian (Details)
External
Kopel, Michael (Universität Graz, Austria)
Schneider, Georg (Universität Graz, Austria)
Organization
Management Accounting and Control Group AB (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
5327 Accounting (Details)
5359 Controlling (Details)
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