IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Project selection and audited accrual measurement in a multi-task setting

Listed author(s):
  • John Christensen
  • Joel Demski
Registered author(s):

    This paper studies monitoring and accrual measurement in a principal-agent setting. The advantage of the principal-agent setting is that it allows accrual measurement to be explicitly connected to monitoring and to encompass questions of managerial behaviour and communication incentives. It also allows the analysis to take place in a setting where competing and complementary sources of information are available. Here the accrual measurement is used to discipline other, perhaps more timely, sources of information and to carry information itself. The argument rests on a two-period agency setting. The usual moral hazard story is expanded to include the agent also observing .a potential project opportunity (e.g. an additional customer, a labour-saving opportunity or whatever). This creates an interest in monitoring the agent's project selection. This monitoring may, it turns out, be useful for purposes of controlling the familiar short-run versus long-run tension or for better managing short-run incentives. Accrual questions enter in terms of allocating the project's up-front cost across the two periods, thereby separating expenditure from expense. In information-content terms, though, this turns out, given that cashflow is observed, to be equivalent to a monitor story that reports on project selection.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Taylor & Francis Journals in its journal European Accounting Review.

    Volume (Year): 4 (1995)
    Issue (Month): 3 ()
    Pages: 405-432

    in new window

    Handle: RePEc:taf:euract:v:4:y:1995:i:3:p:405-432
    DOI: 10.1080/09638189500000026
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:4:y:1995:i:3:p:405-432. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.