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This paper examines how managerial discretion and judgment in revenue recognition affect earnings and revenue value relevance. Specifically, the purpose of this paper is to assess the impact of lifting the objective-price constraint in revenue recognition on the value relevance of earnings and revenue by examining firms’ contemporaneous returns-earnings/revenue relation before and after the implementation of Accounting Standards Update (ASU) 2009-13. In addition, this paper examines how the change in earnings value relevance is conditioned by agency costs, corporate governance, information environment, and audit quality. This paper further examines whether earnings, revenue, and accruals quality change after the objective-price constraint is lifted.

This paper employs a difference-in-differences research design to examine whether earnings and revenue value relevance are enhanced or lowered more for a list of 107 US firms that applied selling price estimates in revenue recognition under ASU 2009-13 than for a list of 107 matched US firms that did not apply selling price estimates. Sub-sample analyses are employed to examine how agency costs, corporate governance, information environment, and audit quality condition the change in value relevance. Additional analyses examine the changes in earnings, revenue, and accruals quality using accruals, revenue accruals, discretionary revenue, absolute abnormal accruals, earnings/revenue predictability, and smoothness.

The empirical results suggest that lifting the objective-price constraint in revenue recognition improves earnings and revenue value relevance for positive earnings and that the effect of information usefulness dominates that of managerial opportunism. Change in the earnings value relevance is conditioned by the level of corporate governance, information environment, and audit quality. Evidence of no significant reduction in the earnings/revenue/accruals quality corroborates the main findings.

The findings lend support to the new revenue standard (ASU 2014-09) that continues the use of the estimates of selling price in revenue recognition.

This study provides some of the first evidence that managerial judgment exercised in revenue recognition through the use of selling price estimates (i.e. lifting the objective-price constraint in revenue recognition) enhances earnings and revenue value relevance while such benefit does not come at a cost of reduced earnings/revenue/accruals quality.

Resource scarcity is a major difficulty facing firms that engage in new product development (NPD) projects. The purpose of this paper is to understand how resource allocation strategies affect NPD performance and which strategy is the best alternative, a research and development (R&D) process model is constructed using system dynamics.

Moreover, resource allocation strategies are categorized into two types: design‐stage‐first strategy and manufacturing‐stage‐first strategy, and several important indicators of performance evaluation are defined. Then different workload scenarios are developed to test the relationships between resource allocation strategy and various NPD performance measures.

The most important finding from simulation results is that a firm should allocate its resources into early development stage first in order to obtain superior R&D performance.

This paper has successfully constructed new system dynamics model for quantifying the performances of R&D process.

The worlds of literature and business are as different as they get. While literature often revels in the artistic and abstract aspects, business focuses on the more practical and realistic facets of life. Literature talks ideas, business speaks money. Writers express themselves with words, business men prove themselves through numbers. Former US President Calvin Coolidge once exclaimed, “The business of America is business. Not Art!” (West brook, 1980:1). However, this difference is, at most, on the surface. Literature and business intertwine on more perspectives than one might think. For example, there are traces of corporate capitalism in Upton Sinclair’s The Jungle in which workers are portrayed as “slaves to the economic system” (Watts, 1982:77). Or Joseph Heller’s Something Happened depicts the harsh rules of business by which any one who is not contributing efficiently to the success of a company will be discarded, also known as corporate Darwinism (Horner, 1992:27). Or in Mark Twain’s A Connecticut Yankee in King Arthur’s Court, with a humourous tone, medieval England is modernised with various economic measures, such as new currency, stock exchange in the court, and full‐time employment for the knights, and hence saved from financial ruins (West brook, 1980:49). In other words, literature has been drawing inspirations from the financial market. Therefore, it might not be surprising if there are major themes in literature than can be applied to the corporate world. In fact, managers at all levels can learn valuable lessons for the many areas of business from literature.

Fundamental shifting of the world toward intangible intensive economy raised an apprehension regarding value relevance of internally generated intangible assets. In the previous studies, research and development (R&D) expenditure is recognized as a significant accounting item, which can indicate potential internally generated intangible assets. This study aims to examine whether investors consider nature of intangible intensity of a firm for the evaluation of R&D expenditure to determine equity values in India.

The authors compared value relevance of capitalized and the expensed portion of R&D expenditure between intangible- and non-intangible-intensive firms. They adopted empirical model grounded on the generalized version of Ohlson’s (1995) model.

The findings of the study indicate that, in intangible-intensive (non-intangible) firms, the capitalized portion of expenditure is positively (negatively) significant and the expensed portion of R&D expenditure is negatively (positively) significant to explain equity values.

The findings of this study may have potential implication for the discussion on the accounting treatment of internally generated intangible assets based on the nature of intangible intensity of the firm. The study also suggests that while setting standards, standard-setters should consider nature of intangible intensity of the firm, which could disseminate the discrepancy between the market and book value of the equity.

The study provides evidence, how value relevance of R&D reporting is affected by the nature of intangible intensity of a firm.

This paper aims to examine the impact of the intangible intensity of the firm on the relevance of research and development (R&D) information to determine equity values in India. Additionally, the study compares the association of input information on R&D investment (the reported R&D cost) and output information on R&D investment (patent count) with equity values. Further, the study also examines the operational nature of the firm and patent count, which is the better proxy to measure the intangible intensity of the firm.

The authors compared the explanatory power of R&D information between intangible and non-intangible intensive firms. To estimate the value relevance of R&D information, the authors followed the statistical model based on the theoretical framework of the residual income model.

The results indicate that there is a significant moderating impact of the intangible intensity of the firm on the relevance of R&D information to determine equity values in India over the 25 years study period (from 1991 to 2016). Further, in India, the study finds that the input information of R&D outlay is more relevant than output information on R&D outlay to determine equity values, irrespective of the proxy measure of intangible intensity. Moreover, the study finds that the operational nature of the firm is a better proxy of the intangible intensity of the firm compared to patent counts.

In this study, pooled cross-sectional data were used for analysis. In the future, longitudinal and panel data can be used for more insightful results.

The findings of the study provide direction to investors and creditors to find the intrinsic value of the investments in internally developed intangible assets, which will reduce the asymmetry between the market value and accounting value of equity.

The paper offers insights into the impact of intangible intensity on the relevance quality of R&D information in an emerging country.

The purpose of this study is to investigate how digital technologies are used for facilitating knowledge sharing and decision-making through enhanced coordination and communication and their impact on job performance in organizations.

A conceptual model is developed within the background of the social capital theory through a comprehensive review of the related literature for exploring how digital technologies can improve knowledge sharing and decision-making via enhanced communication and coordination between individuals in organizations for better job performance. This model is then tested and validated based on structural equation modeling of the collected survey data in Australia.

This study shows that digital technology enhanced coordination and communication have significant impact on knowledge sharing. It finds out that digital technology driven coordination significantly influences decision-making and digital technology driven knowledge sharing significantly influences decision-making. Furthermore, this study reveals that enhanced decision-making and knowledge sharing can lead to better job performance in organizations.

To the best of the authors’ knowledge, this study is the first attempt to explore the role of digital technologies in enhancing knowledge sharing and decision-making for better job performance in a digitalized working environment in organizations. The validated model can be used as the foundation to further investigate the changing role of digital technologies in driving knowledge sharing for better performance of individuals and competitive advantages of organizations.

The purpose of this paper is to examine the association between Simons’ (2000) enabling (beliefs and interactive) use of controls with employee empowerment, and the subsequent influence on organisational performance.

A survey questionnaire was distributed to 636 Australian manufacturing organisations.

The findings indicate that the enabling use of controls is associated, both directly and indirectly, through the level of employee empowerment, with organisational performance.

This paper provides an initial empirical insight into the relationship between the use of controls with the level of employee empowerment. The findings highlight the significant interrelationship between the enabling use of controls and employee empowerment and the importance of both facets in enhancing organisational performance.

This paper aims to explore the influence of founder shareholders’ resources on the allocation of control rights from the perspective of incomplete contract theory and resource-based theory.

This paper analyzes newspaper materials with NVivo11on a case of battle for corporate control in Chinese top-listed company-Vanke Group.

The research shows that human capital is the key resource and the holding proportion of financial resources directly affects the allocation of control rights. At the same time, social capital is unstable and easily broken. At last, institutional environment also affects the degree between the relationship of founder shareholders’ resources and the allocation of control rights. The influence of founder-shareholder resources on the allocation of control rights follows the path of “crisis – founder-shareholder’s resources – founder’s ability - allocation of control rights.”

This study only selects the financial capital, human capital and social capital of Shi Wang, the founder of Vanke, as the analysis object. The study can expand the types of founder shareholder resources to verify and enrich the conclusions.

The current theoretical research in the literature focuses on the necessity of equity and shareholder’s resources versus the control rights. Some key factors and mechanism on the relationship have not been fully clarified. The results of this paper not only extend the combination research of social network and corporate governance, but also provide enterprise founders with references for making reasonable decisions during control battle.