Prelims

Half Title Page

Advances in Management Accounting

Series Page

Advances in Management Accounting

Series Editors:

Volumes 1–25: Marc J. Epstein and John Y. Lee

Volumes 26 and 27: Marc J. Epstein and Mary A. Malina

Volumes 28 and 29: Mary A. Malina

Recent Volumes:

Volumes 1–29: Advances in Management Accounting

Title Page

Advances in Management Accounting  Volume 30

Advances in Management Accounting

Edited By

Mary A. Malina

University of Colorado Denver, USA

United Kingdom – North America – Japan India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2018

Copyright © 2018 Emerald Publishing Limited

Reprints and permissions service

Contact: permissions@emeraldinsight.com

No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters' suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-78756-440-4 (Print)

ISBN: 978-1-78756-439-8 (Online)

ISBN: 978-1-78756-441-1 (Epub)

ISSN: 1474-7871 (Series)

Contents

List of Contributors

Editorial Board

• Christopher Akroyd

  Oregon State University, USA

• Shannon W. Anderson

  University of California Davis, USA

• Jan Bouwens

  University of Cambridge, UK

• Adriana Rejc Buhovac

  University of Ljubljana, Slovenia

• Laurie Burney

  Baylor University, USA

• Clara X. Chen

  University of Illinois, USA

• Martine Cools

  Katholieke Universiteit Leuven, Belgium

• Antonio Dávila

  University of Navarra, Spain

• Eric G. Flamholtz

  University of California, Los Angeles, USA

• Dipankar Ghosh

  University of Oklahoma, USA

• Frank G. H. Hartmann

  Erasmus University, The Netherlands

• James W. Hesford

  University of Lethbridge, Canada

• Robert Hutchinson

  Michigan Tech University, USA

• Larry N. Killough

  Virginia Polytechnic Institute, USA

• Leslie Kren

  University of Wisconsin, Milwaukee, USA

• Raef Lawson

  Institute of Management Accountants, USA

• Anne M. Lillis

  University of Melbourne, Australia

• Raj Mashruwala

  University of Calgary, Canada

• Ella Mae Matsumura

  University of Wisconsin, Madison, USA

• Lasse Mertins

  Johns Hopkins University, USA

• Lorenzo Patelli

  University of Denver, USA

• Sean A. Peffer

  University of Kentucky, USA

• Mina Pizzini

  Texas State University, USA

• Arthur Posch

  Vienna University, Austria

• Frederick W. Rankin

  Colorado State University, USA

• Karen L. Sedatole

  Michigan State University, USA

• Lourdes F. White

  University of Baltimore, USA

• Sally K. Widener

  Clemson University, USA

• Marc Wouters

  Karlsruhe Institute of Technology, Germany

Statement of Purpose

Advances in Management Accounting (AIMA) is a publication of quality applied research in management accounting. he journal’s purpose is to publish thought-provoking articles that advance knowledge in the management accounting discipline and are of interest to both academics and practitioners. The journal seeks thoughtful, well-developed articles on a variety of current topics in management accounting, broadly defined. All research methods including survey research, field tests, corporate case studies, experiments, meta-analyses, and modeling are welcome. Some speculative articles, research notes, critiques, and survey pieces will be included where appropriate.

Articles may range from purely empirical to purely theoretical, from practice-based applications to speculation on the development of new techniques and frameworks. Empirical articles must present sound research designs and well-explained execution. Theoretical arguments must present reasonable assumptions and logical development of ideas. All articles should include well-defined problems, concise presentations, and succinct conclusions that follow logically from the data.

Manuscript Form Guidelines

• Manuscripts should include a cover page that indicates the author’s name and affiliation.

• Manuscripts should include a separate lead page with a structured abstract (not to exceed 250 words) set out under 4–7 sub-headings; purpose, design/methodology/approach, findings, research limitations/implications (if applicable), practical implications (if applicable), social implications (if applicable), and originality/value. Keywords should also be included. The author’s name and affiliation should not appear on the abstract.

• Tables, figures, and exhibits should appear on a separate page. Each should be numbered and have a title.

• In order to be assured of anonymous reviews, authors should not identify themselves directly or indirectly.

• Manuscripts currently under review by other publications should not be submitted.

• Authors should email the manuscript in two WORD files to the editor. The first attachment should include the cover page and the second should exclude the cover page.

• Inquiries concerning Advances in Management Accounting should be directed to:

  Mary Malina

  mary.malina@ucdenver.edu

Introduction

This volume of Advances in Management Accounting (AIMA) represents the diversity of management accounting topics, methods, and author affiliation which form the basic tenets of AIMA. Included are studies on traditional management accounting topics such as performance measurement and man- agement control, as well as those on broader topics of interest to manage- ment accountants such as risk management, CEO turnover, and board of director characteristics. The studies in this volume utilize a wide-variety of methods including archival data analysis, surveys, and qualitative field stud- ies. Finally, the diversity in authorship is apparent with affiliations from Sri Lanka, the United Kingdom, and the United States.

This volume begins with a study by Bento, Mertins, and White that pro- vides new insights into the role of management accountants in risk man- agement practices. The authors examine both risk management and internal controls within an enterprise risk management (ERM) system. They develop a framework that includes management accounts’ contributions to both risk management and internal controls, and use empirical evidence to show how they influence ERM effectiveness.

The second article by Patelli uses survey data to investigate factors associ- ated with the extent to which parent companies dialogically use performance measurement and management systems (PMMS) to monitor their foreign subsidiaries. While many have looked at the performance effects of dia- logic PMMS use, few have investigated the characteristics and properties of PMMS that foster the dialogic use between a parent company and its foreign subsidiary. Patelli finds that PMMS are more likely to be used dialogically if the subsidiary has greater strategic autonomy and is more interdependent with other subsidiaries. Additionally, PMMS that are used dialogically have a higher percentage of nonfinancial measure and are perceived as being more comprehensive.

While prior research has examined the effects of CEO turnover on per- formance, the third article in the volume compares the postrestructuring performance of operational restructurings led by newly appointed CEOs as compared to restructurings led by continuing CEOs. Cao, Hsieh, and Kohlbeck find that while the restructuring in both cases leads to performance improvements, at least some of the observed improvements by continuing CEOs can be attributed to earnings management via classification shifting, rather than real improvements in their operations. Their findings suggest that CEO turnover leads to both real changes in managerial actions as well as altered reporting incentives.

Felix explores an interesting question of when it might be valuable for boards of directors to include outside directors who also serve on another firm’s board of directors. Specifically, the study uses archival data to exam- ine whether it is beneficial to have home directors who become informed about investment efficiency by serving as a director at another firm. His find- ings suggest that boards may look to the investment-related experiences that a director has through his/her other board service when deciding to add a new director.

The fifth article in this volume by Wijethilake and Ekanayake begins with a thorough literature review of management control for sustainability, focusing on the various pressures organizations face in their pursuit of sustainability goals. Using the identified pressures, the authors then propose a framework showing how organizations can use sustainability control systems in pro- active strategic responses to corporate sustainability pressures. This article compliments recent studies on corporate social responsibility appearing in Volume 28 of AIMA.

The final article by Subramaniam investigates the performance measure- ment system established by a development bank focused on development and sustainability initiatives in Africa. This unique setting and rich set of inter- view data provide interesting insights into embracing change and sustainabil- ity simultaneously, and how this tension relates to the interplay of strategic performance measurement and managerial accounting.

The six articles in Volume 30 represent relevant, theoretically sound, and practical studies that can greatly benefit the management accounting disci- pline. They manifest the volume’s commitment to providing a high level of contribution to management accounting research and practice.

Mary A. Malina

Editor