Donald K. Clancy and Terry K. Patton
This study examined measures of service efforts and accomplishments for Texas public schools. There were differences in both outcomes and inputs depending on size of the school…
Abstract
This study examined measures of service efforts and accomplishments for Texas public schools. There were differences in both outcomes and inputs depending on size of the school district. Input measures were useful for modeling outcomes of school districts by size. Student background measures--specifically attendance and proportion of economically disadvantaged students--were the most consistent explanators of school outcomes. Measures of the teaching environment, financial policy, efficiency, and funding levels were of less importance in explaining school effectiveness.
Donald K. Clancy and Denton Collins
The purpose of this study is to review the capital budgeting literature over the past decade.
Abstract
Purpose
The purpose of this study is to review the capital budgeting literature over the past decade.
Design/methodology
Specifically, over the years 2004–2013, we review works appearing in the major academic journals in accounting, finance, and management. Further, we review the specialized academic journals in management accounting. We examine the frequency of articles by journal and year published, the type of research method applied, and the topic area studied. We then review the research findings by topic area.
Findings
We find 110 articles appearing in the selected journals. While the articles increase in frequency, the research methods applied are predominantly analytical and archival in nature with relatively few experiments, case studies, or surveys. Some progress is observed for capital budgeting techniques and new methods for structuring uncertainty. The studies find that the size of capital budgets is about right for companies with high financial reporting quality, for liquid companies, during periods of normal cash flow, when the budget is financed by equity, for companies when they first go public or first go private. Tax rates and financial reporting methods for depreciation and tax expenses distort capital budgets. Organization structure and performance measurement can distort capital budgeting. Individual differences, especially optimism and honesty, can influence capital budgeting decisions.
Limitations and Implications
This review is limited to the major journals in accounting, finance, and management; and the specialized journals in management accounting. There is much research to be done on capital budgeting, especially case studies of actual practice and experiments related to individual and group decision processes.
Details
Keywords
Donald K. Clancy and Francisco J. Román
Extending the work of Bayou (2001), we empirically investigate the relationship between firm size and resource productivity to assess whether the productivity of resources (value…
Abstract
Purpose
Extending the work of Bayou (2001), we empirically investigate the relationship between firm size and resource productivity to assess whether the productivity of resources (value in use) and their underlying value at sale (value in sale) vary with firm’s size.
Methodology
We use seemingly unrelated regression of revenues and equity values on assets and employees for a large sample over a wide time period and across all industries. We compare companies that are growing, declining, or continuing in size relative to their industry.
Findings
With some variability on growth, we find that smaller companies hold more productive resources based on their capacity to generate more revenues per unit of resources (assets) relative to large companies. Further, as predicted, a firm’s workforce has productive value in use, but limited value after a firm’s sale as measured by equity values.
Practical implications
Collectively, our findings suggest that firm size matters in influencing resource productivity, and a workforce has productive value in use, but low value in sale.