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Bewertung von Fertigerzeugnissen zu Volloder Teilkosten? Ansatz von Forderungen zum Nennwert oder Barwert?

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  • Christian Gaber

    (IKB Deutsche Industriebank AG)

Abstract

Summary Accounting measures are widely used for performance evaluation and executive compensation. This paper examines the provision of managerial investment incentives by an accounting based incentive scheme in a multiperiod agency setting. We study the properties of a full costing in comparison to a direct costing of finished goods inventories to motivate a shortsighted manager to make optimal investment decisions. Furthermore, the paper compares the incentive effects of valuing loans and receivables originated by the enterprise at amortized cost in comparison to a recognition at face value. This analysis emphasises the role of the effective interest rate method to perfectly match interest revenues with the firm’s cost of capital.

Suggested Citation

  • Christian Gaber, 2005. "Bewertung von Fertigerzeugnissen zu Volloder Teilkosten? Ansatz von Forderungen zum Nennwert oder Barwert?," Schmalenbach Journal of Business Research, Springer, vol. 57(4), pages 325-352, June.
    • Handle: RePEc:spr:sjobre:v:57:y:2005:i:4:d:10.1007_bf03372769
    DOI: 10.1007/BF03372769
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    References listed on IDEAS

    as
    1. Srinidhi, Bin & Ronen, Joshua & Maindiratta, Ajay, 2001. "Market Imperfections as the Cause of Accounting Income Smoothing--The Case of Differential Capital Access," Review of Quantitative Finance and Accounting, Springer, vol. 17(3), pages 283-300, November.
    2. Reichelstein, S, 2000. "Providing managerial incentives: Cash flows versus accrual accounting," Journal of Accounting Research, Wiley Blackwell, vol. 38(2), pages 243-269.
    3. Alfred Wagenhofer, 2003. "Accrual-based compensation, depreciation and investment decisions," European Accounting Review, Taylor & Francis Journals, vol. 12(2), pages 287-309.
    4. Rogerson, William P, 1997. "Intertemporal Cost Allocation and Managerial Investment Incentives: A Theory Explaining the Use of Economic Value Added as a Performance Measure," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 770-795, August.
    5. Sunil Dutta & Xiao‐jun Zhang, 2002. "Revenue Recognition in a Multiperiod Agency Setting," Journal of Accounting Research, Wiley Blackwell, vol. 40(1), pages 67-83, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    D82; G31; M41;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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