Ima Summary Papers

Hoorcollege 1

Davila, A., and G. Foster. 2005. Management accounting systems adoption decisions: Evidence and

performance implications from early-stage/startup companies.

Q: what determines MAS implementation in start-ups?

Conclusions:

 First financial planning systems will be implemented and

 MAS (need to) grow over a firm’s life cycle

 (cash) budgets are the earliest system adopted

 MAS depend on various firm characteristics

o CEO : experience and beliefs

o # employees

o venture capitalist presence (will speed up process)

 Positive association between adoption of budgets and firm performance

Sandino (2007) “Introducing the first MCS: evidence from the retail sector”

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Q1: What types of initial MCS do early-stage firms put in place? Do initial MCS vary

across early-stage firms?

Q2: Are the choices of particular types of initial MCS in early-stage firms associated

with the firm’s strategy?

Q3: Are business performance and

the perceived usefulness of initial

MCS related to the fit between the

initial MCS introduced and the

firm’s strategy?

Conclusion:

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Choice among categories depends

on firm’s strategy and structure

If initial MCS suits better to strategy: better performance

Hoorcollege 2

Bouwens, J., and L. van Lent. 2007. Assessing the performance of business unit managers

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Study the use of performance measures in determining

– periodic assessments

– bonus decisions

– career paths

of 140 business unit managers

Results:

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Higher weight on accounting return measures as decision making

authority of managers increase

Disaggregated measures (expense/revenue) and non-financial measures become

more important when interdependencies between BU’s increase

Conclusion:

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separate and distinct roles for different types of performance measures

Hoorcollege 4

Bebchuk & Fried (JACF, 2005) “Pay without Performance: Overview of the Issues”

Goal: How have managerial power and influence shaped...