Managerial performance evaluation for capacity investments

Capacity Rights and Full Cost Transfer Pricing

“…As pointed out by earlier studies, the corresponding relative benefit depreciation charges will coincide with straight-line depreciation if the x it decline linearly over time at a particular rate(Nezlobin et al 2015).…”

“…Our criterion for incentive compatibility follows earlier work on goal congruent performance measures such as Rogerson (1997), Dutta and Reichelstein (2002), Baldenius et al(2007) and Nezlobin et al(2015). Accordingly the divisional performance measures must in any specific time period be congruent with the objective of maximizing firm value.…”

Capacity Rights and Full Cost Transfer Pricing

“…14 As pointed out by earlier studies, the corresponding relative benefit depreciation charges will coincide with straight-line depreciation if the x it decline linearly over time at a particular rate (Nezlobin et al 2015).…”

Dynamic Investment Models in Accounting Research

“…While the accounting literature relying on dynamic investment models is relatively new, one can already identify several common Introduction themes in its findings. Perhaps the most consistent result in this growing literature is that replacement cost accounting has distinct advantages over other accounting rules from both the perspective of managerial performance measurement (e.g., Rogerson, 2008;Nezlobin et al, 2015;Dutta and Reichelstein, 2010) and equity valuation (Nezlobin, 2012;Livdan and Nezlobin, 2017;Dutta and Nezlobin, 2017a). While different papers focus on different features of the replacement cost information, in this monograph, we proceed with the following unified definition.…”