The Association Between Activity‐Based Costing and Manufacturing Performance

Ittner, Christopher D.; Lanen, William N.; Larcker, David F.

doi:10.1111/1475-679x.00068

Cited by 211 publications

(173 citation statements)

References 16 publications

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“…We measure cost improvement using four categories of cost borrowed from the literature (e.g., Ittner et al, 2002): materials cost, labor cost, overhead cost, and non-manufacturing cost. Respondents were asked to indicate the level of improvement in these items over the past three years using a seven-point Likert-scale (1 = "Extremely low improvement," 7 = "Extremely high improvement").…”

Section: Cost Improvementmentioning

confidence: 99%

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Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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Organizations increasingly rely on information technology (IT) to improve performance. Yet, there is debate about the pay-off of the IT revolution, and empirical evidence suggests that investments in IT do not guarantee enhanced performance. Drawing from accounting, marketing, management and information technology literature, this study uses structural equation modeling to assess the extent to which managerial use of IT is intertwined with control issues including learning routines (internal and external), product quality, cost improvement, customer satisfaction and firm profitability. The conceptual framework builds on knowledge-and resource-based views and return on quality perspectives. The results indicate support for the theoretical framework. Extent of managerial IT use influences internal and external learning routines that influence quality and cost improvement. Quality improvement significantly impacts customer satisfaction and cost improvement that significantly impact firm profitability. The non-hypothesized paths are not significant, indicating that learning routines, quality improvement, cost improvement and customer satisfaction are intervening variables between extent of managerial IT use and firm profitability. Further, the sample is split into two industry subgroups, durable and nondurable goods subgroups, and the two-group analysis reveals that industry moderates the relationship among the variables under study. The effects are in general more pronounced for durable goods firms.

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Section: Cost Improvementmentioning

confidence: 99%

“…Strongly disagree Strongly agree Cost improvement (Ittner et al, 2002) Please rate the extent to which your firm has experienced improvement in costs over the last three years Customer satisfaction (Sim and Killough, 1998;Ahire and Dreyfus, 2000) Very low decline Very high decline…”

Section: (Continued)mentioning

confidence: 99%

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Maiga

Nilsson

Jacobs

2013

International Journal of Accounting Information Systems

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“…Institutional investor shareholding (Insthold), controls for institutional investor's better informational and knowledge on monitoring as well as incentive to enchant minority shareholder's wealth, defined as the number of shares hold by institutional investor divided by shares outstanding (Jensen & Meckling, 1976;Leland & Pyle, 1977;Jensen & Ruback, 1983;Stulz, 1988;Yermack, 1996;Claessens, Djankov, & Lang, 2000, Fich & Shivdasani, 2006. While data of the research covers 11 years and 18 industries, thus 10 yearly dummies (YD) and 17 industrial dummies (IND) are also incorporated into the regression equation to control for industry effect and macroeconomic condition on firm's profitability (Cagwin & Bouwman, 2002;Ittner, Lanen, & Larcker, 2002;Jones & Kato, 1995).…”

Section: Agementioning

confidence: 99%

Independent Director, Executives Compensation and Corporate Performance-Correcting Self-Selection Bias by Matching Methods

Chang¹,

Lieu²

2016

IJEF

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Based on data of listed companies on Taiwan Stock Exchange (TWSE) through 2001~2011, this paper examines whether board independence has effects on executive compensation and corporate performance. Existing studies lacked of considering self-selection of board independence in evaluating the effects of board independence on economic consequence. This may incur estimation bias because systematic factors determining firm's introducing independent director also have influences on economic consequence. While Heckman (1979)'s two-step estimation addressed selection duo to unobservables, this paper employs propensity score matching (PSM) from Rubin (1983, 1985a,b) to address sample selection duo to observables, and forms two groups of samples, namely, firms with independent director and firms without independent director but share similar characteristics with the former. Empirical evidence from regression estimation shows divergent outcomes under before-matching versus after-matching samples. Before matching, greater degree of board independence is associated with higher profitability and higher level of total and average executive compensation. After matching, outperformance as well as overpay on executive compensation of firm with greater board independence is vanished. After controlling selection bias duo to observables versus unobservables, our evidence concludes that greater board independence is uncorrelated with greater corporate performance and executive compensation overpay.

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“…ABC not only improves the accuracy of product-and service-costing but also helps managers understand how resources are used through financial performance, such as return on investment and bottom line statements (Cagwin and Bouwman, 2002). Prior research on ABC has focussed on various aspects, including, for example the success of ABC (Anderson and Young, 1999;Foster and Swenson, 1997;Roberts and Silvester, 1996;Shields, 1995), ABC implementation (Gosselin, 1997;Krumwiede, 1998;Majid and Sulaiman, 2008;McGowan and Klammer, 1997;Chongruksut and Brooks, 2005), and the benefits and consequences of ABC (Ittner et al, 2002;Kennedy and Affleck-Graves, 2001;Swenson, 1995;Cagwin and Bouwman, 2002;Maiga and Jacobs, 2008). In this paper, we focus on ABC implementation success and factors influencing this.…”

Section: Introductionmentioning

confidence: 99%

ABC success: evidence from ISO 9000 certified companies in Thailand

Intakhan

2014

Asian Review of Accounting

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Purpose – The purpose of this paper is to examine the success of activity-based costing (ABC) implementation by confirmatory factor analysis of ISO 9000 certified companies in Thailand. Design/methodology/approach – A structured questionnaire was used to collect data from key participants, accountant managers in ISO 9000 certified companies. Findings – The study confirmed the six constructs for the sample of 102 key participants. The results indicated that ABC implementation success in the context of ISO 9000 certified companies in Thailand consists of upper-management support, ABC system training, non-accounting ownership, links to quality initiative, adequate resources, and links to performance evaluation. Originality/value – The findings have significant implications for ISO 9000 certified companies which intend to adopt or implement ABC. Past findings on ABC implementation success have a small-sample size so they are of limited usefulness. This research has a larger sample size and more carefully chosen participants and so the generalizations are more acceptable.

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The Association Between Activity‐Based Costing and Manufacturing Performance

Cited by 211 publications

References 16 publications

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Extent of managerial IT use, learning routines, and firm performance: A structural equation modeling of their relationship

Independent Director, Executives Compensation and Corporate Performance-Correcting Self-Selection Bias by Matching Methods

ABC success: evidence from ISO 9000 certified companies in Thailand

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