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									                        Limperg Ph. D. Program
                        June 26 – June 30, 2006

The aim of this course is:
     (1) to provide students with an understanding of current research issues in managerial accounting, and
     (2) to enable students to develop a research proposal and select the method appropriate to study the
         research question of interest.
The subject draws primarily on theoretical frameworks developed in the economics and behavioural
research literature. This literature provides the foundation for analyzing the factors that influence the
effectiveness of management accounting systems. Management accounting systems are conceptualized as
systems that are designed to serve two roles – the decision facilitating role and the decision control role.
We aim to enhance students‟ ability to assess the functional and dysfunctional effects of management
accounting systems in serving these roles. We also examine the methods used in empirical management
accounting research by studying method applications in extant research. This will enable students to
critically evaluate, analyse, and criticize both the conceptual and method content of the extant literature.
Through these evaluations we aim to enhance students‟ ability to develop new research questions that
increase our understanding of management accounting systems in practice and to utilize appropriate
research methods to explore such questions.

This course is „seminar based‟ as opposed to a lecture style. Students are expected to carefully read the
papers assigned for each seminar. One class member will be assigned the readings set for each seminar. It
will be that student‟s responsibility to present the assigned papers and critique them. All other students are
expected to read the set papers prior to each seminar, and to be ready to engage in discussion with the
student presenting and critiquing each paper. The classroom environment will therefore be highly

Seminar presentations and participation                   50%
Research proposal                                         20%
Referee report on an assigned paper                       30%

                        Seminar Leader:

                        Professor Chris Ittner
                        The Wharton School
                        University of Pennsylvania

Course Organizer:       Professor Jan Bouwens
                        Tilburg University

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306-762 ADVANCED MANAGERIAL ACCOUNTING                                                     Course Outline


 Additional required reading:

 Ittner, C.D. and Larcker, D.F. (2001), “Assessing Empirical Research In Managerial Accounting: A Value-
 Based Management Perspective”, Journal of Accounting and Economics, pp 349-410.

 Chenhall, R. and Moers, F. (2005), “The Issue of Endogeneity within Theory-Based, Quantitative
 Management Accounting Research,” working paper, Monash University and Maastricht University.

 Shook, C., Ketchen, D., Hult, G., and Kacmar, K. (2004), “An Assessment of the Use of Structural
 Equation Modeling in Strategic Management Research,” Strategic Management Journal 25: 397-

 Smith, D. and Langfield-Smith, K. (2004), “Structural Equation Modeling in Management
 Accounting Research: Critical Analysis and Opportunities,” Journal of Accounting Literature 23:

 Skim the following paper:

 Richard A Lambert., Contracting theory and accounting, Journal of Accounting & Economics. Amsterdam:
 Dec 2001.Vol.32, Iss. 1-3; pg. 3

 Instructors may choose to send you an additional paper for their seminar. This should also be considered
 required material.


                             Day 1: Theoretical Frameworks

          Seminar 1: Determinants of Control Systems Choices (Behavioral)

 Govindarajan, V. and Gupta, A.K. (1985), “Linking Control Systems to Business Unit Strategy: Impact on
 Performance”, Accounting, Organizations and Society, 10(1), pp. 51-66.

 Hopwood, A.G. (1972), “An Empirical Study of the Role of Accounting Data in Performance Evaluation”,
 Journal of Accounting Research, (Supplement), pp. 156-182.

 Westphal, J. and Zajac, E. 1994. “Substance and symbolism in CEOs‟ long-term incentive plans”,
 Administrative Science Quarterly 39: 367-390.

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306-762 ADVANCED MANAGERIAL ACCOUNTING                                                     Course Outline

          Seminar 2: Determinants of Control System Choices (Economic)

 Abernethy, M.A., Bouwens, J. and Van Lent, L. (2004), “Determinants of Control System Design in
 Divisionalized Firms, The Accounting Review,.

 Bushman, R.M., Indjejikian, R.J. and Smith, A. (1995), “Aggregate Performance Measures in Business Unit
 Manager Compensation: The Role of Intrafirm Interdependencies”, Journal of Accounting Research,
 Vol. 33 Supplement, pp. 101-128.

 Ittner, C., Lacker, D. and Rajan, M. (1997), “The Choice of Performance Measures in Annual Bonus
 Contracts”, The Accounting Review 72 (April 1997): 231-55.

 Moers, F. (forthcoming), “Performance Measure Properties and Delegation,” The Accounting

                         Day 2: Alternative Research Methods

               Seminar 3: Field Research on Performance Measurement

 Banker, R., Potter, G., and Srinivasan, D. (2000), “An Empirical Investigation of an Incentive Plan That
 Includes Nonfinancial Performance Measures,” The Accounting Review 75 (1), 65-93.

 Ittner, C., Meyer, M. and Larcker, D. (2003), “Subjectivity and the Weighting of Performance Measures:
 Evidence from a Balanced Scorecard”, The Accounting Review

 Malina, M.A. and F.H. Selto (2001), “Communicating and Controlling Strategy: An Empirical Study of the
 Effectiveness of the Balanced Scorecard”, Journal of Management Accounting Research, volume 13, pp.

 Merchant, K. and Manzoni, J.F. (1989) “The Achievability of Budget Targets in Profit Centers: A Field
 Study”, The Accounting Review, volume 64, pp. 539-558

     Seminar 4: Archival and Survey Research on Performance Measurement

 Healey, P.M. (1985), “The Effect of Bonus Schemes On Accounting Decisions”, Journal of Accounting and
 Economics 7, p 85-107

 Ittner, C., Larcker, D. and Randall, R. (2003), “Performance Implications of Strategic Performance
 Measurement in Financial Services Firms,” Accounting, Organizations and Society, August,.

 Said, A.A., H.R. Hassabelnaby, and B. Wier (2003) “An Empirical Investigation of the
 Performance Consequences of Nonfinancial Measures”, Journal of Management Accounting Research,
 volume 15, pp. 193–223

 Scott, T., Tiessen, P., 1999. “Performance Measurement and Managerial Teams”, Accounting,
 Organizations and Society, pp. 263-285.

                                                                                                    Page 3

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306-762 ADVANCED MANAGERIAL ACCOUNTING                                                        Course Outline

                                                  Day 3

  Seminar 5: Applying Alternative Theories and Research Methods: Studies on
                               Cost Accounting

 Anderson, S. (1995), “Measuring the Impact of Product Mix Heterogeneity on Manufacturing Overhead
 Cost”, The Accounting Review 70 (3), pp. 363-387

 Anderson, S.W. and S.M. Young (1999), “The impact of contextual and process factors on the
 evaluation of activity-based costing systems”, Accounting, Organizations and Society 24, pp. 525-559

 Cavalluzzo, K.S., C.D. Ittner, and D.F. Larcker (1998), “Competition, Efficiency and Cost Allocation in
 Government Agencies: Evidence on the Federal Reserve System”, Journal of Accounting Research 36
 (spring), pp. 1-32

 Pizzini, M. (2006), “The relation between cost-system design, managers‟ evaluations of the relevance and
 usefulness of cost data, and financial performance: an empirical study of US hospitals”, Accounting,
 Organizations and Society, pp. 179-210.

  Seminar 6: Applying Alternative Theories and Research Methods: Studies on
                   Management Accounting in Health Care

 Abernethy, M. and Chua, W.F., (1996), “A Field Study of Control System „Redesign‟: The Impact of
 Institutional Processes on Strategic Choices,” Contemporary Accounting Research 13 (2), pp. 607-629.

 Balakrishnan, R. and Soderstrom, N. (2000), “The Cost of System Congestion: Evidence from the
 Healthcare Sector”, Journal of Management Accounting Research 12, pp. 97-114,

 Eldenburg, L., and Krsihnan, R. (2003), “Public versus private governance: a study of incentives and
 operational performance,” Journal of Accounting and Economics 35 (3), pp. 377-404.

 Ittner, C., Larcker, D., and Pizzini, M. (2006), “Performance-Based Compensation in Professional Service
 Firms,” Working paper, University of Pennsylvania, Stanford University, and Southern Methodist

                                                  Day 4

                       Seminar 7: Integrating Research Across Fields

 Anderson, S.W., Glenn, D., and K. Sedatole (2000), “Sourcing Parts of Complex Products:
 Evidence on Transaction Costs, High-Powered Incentives and Ex-Post Opportunism”, Accounting,
 Organizations and Society, pp. 723-749.

 Core, J., Guay, W. and Rusticus, T. (2006), “Does Corporate Governance Cause Weak Stock
 Returns? An Examination of Firm Operating Performance and Investor Expectations”, Journal of
 Finance 61 (2), pp. 655.

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306-762 ADVANCED MANAGERIAL ACCOUNTING                                                 Course Outline

                                         Day 4 (continued)

 Lambert, R., Larcker, D. and Weigelt, K. (1993), “The Structure of Organizational Incentives”,
 Administrative Science Quarterly 38 (3), pp. 438-461.

 Niraj, R., M. Gupta, and C. Narasimhan, (2001) “Customer Profitability in a Supply Chain”,
 Journal of Marketing, Vol. 65, Issue 3, pp. 1 – 16.

           Seminar 8: Student Presentations of Theoretical Framework (I)

 Students to present a proposal for a research study of their choice. Presentations should briefly
 review the study‟s motivation and theory development, hypotheses or research questions, and
 preliminary research design.

                                                     Day 5

           Seminar 9: Student Presentations of Theoretical Framework (II)
 Continuation of students‟ proposal presentations.

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