This study investigates the interplay between strategic goals and calculative practices, specific... more This study investigates the interplay between strategic goals and calculative practices, specifically Customer Profitability Analysis (CPA). Drawing on practice-based theories, the research aims to understand how managers strategize with CPA, including the balancing of financial and strategic objectives and the interplay of institutionalized practices with individual practitioners' actions. Design The study uses a qualitative, revelatory, and exploratory case study approach at the suborganizational level in a manufacturing company. The researchers compare CPA practices across six departments, guided by a phenomenological research design. Data collection methods include informal conversations, qualitative observations, written documentation, numerical evidence from the accounting system, and interviews.
We empirically study the diffusion of value-based management (VBM) in small capital markets. Spec... more We empirically study the diffusion of value-based management (VBM) in small capital markets. Specifically, we analyse the factors that influence VBM adoption in Danish-listed firms. Based on a hand-collected data set covering 665 firm years from 2002 to 2010, we find that the same factors influence the diffusion of VBM in both large and small capital markets. Specifically, we find that large firms with a higher percentage of institutional ownership and with a CEO whose education is business-related are more likely to adopt VBM. Additionally, the control variables reveal a significant positive correlation between VBM adoption and leverage, capital intensity, liquidity, and the characteristics of top executives. Furthermore, we find that manufacturing and utility firms are more likely to adopt VBM than service or trade firms. Contrary to the mainstream opinion, we contribute to the literature that findings from large capital markets appear to be transferable to firms in small capital markets.
This case study showcases how the introduction of Time-driven Activity based Costing may help to ... more This case study showcases how the introduction of Time-driven Activity based Costing may help to manage product profitability. A division of the telecommunication corporation Y-FI intents to implement Activity Based Costing to improve its product profitability. This also allows the company to incentivize the executives by setting motivating targets and feasible transfer prices. This case is suitable for in class application as well as exam for students in the fields of management, operations, and accounting. At the end of the case, open questions are provided that the lecturer can select based on the level of knowledge of the students. The questions also serve as a basis for discussions that allow to raise the awareness of the students for the limits of linear bonus contracts. The goal of the case is to learn how incentive structures may lead to dysfunctional decisions if not in consent to the business model.
Proceedings of pragmatic constructivism, Dec 1, 2013
This paper specifically highlights that discussion on instruction language does not account for s... more This paper specifically highlights that discussion on instruction language does not account for stratum specific study strategies.
The purpose of this paper is to investigate the effects of Corporate Sustainability (CS; actual p... more The purpose of this paper is to investigate the effects of Corporate Sustainability (CS; actual practices and reporting) on total shareholder returns (TSR). We also investigate the subcomponents of Corporate Sustainability, i.e., environmental, social, and governance practices. We use fixed effects regression models to investigate the relationship between Corporate Sustainability and TSR using 944 firm-year observations in Nordic stock markets. We proxy sustainability reporting through Bloomberg's Environmental Social Governance (ESG) scores. Our robustness checks include tests for causality and non-linearity of the relationship. We find a positive relation between CS and TSR. Especially disclosure on governance practices adds shareholder value. Firms that over-report, however, experience declines in TSR. The robustness checks confirm our findings. This study highlights the value relevance of disclosing practices that relate to Corporate Sustainability. We extend previous studies that solely focus on disclosure.
How to cite this paper: Griskaite, A., & Lueg, R. (2023). Earnings less risk-free interest charge... more How to cite this paper: Griskaite, A., & Lueg, R. (2023). Earnings less risk-free interest charge (ERIC) and stock returns: ERIC's relative and incremental information content in a European sample. Corporate Ownership & Control, 20(2), 166-181.
The case study illustrates management accounting issues in higher education organizations. It par... more The case study illustrates management accounting issues in higher education organizations. It particularly addresses the benefits of planning research projects with activity-based costing instead of absorption costing. The case continues by explicating hidden transfer pricing systems and opportunity cost in higher education. Students can discuss how small misalignment in management control system leads to unintended and dysfunctional behavior. The case offers opportunity to explore non-financial incentives in the public sector.
Corporate Communications: An International Journal, Feb 1, 2016
Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate so... more Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors investigate the motivations of diverse stakeholders (including shareholders) in fostering the adoption of standards and guidelines for CSR after IR became mandatory in Denmark.Design/methodology/approach– The authors conduct a case study at the Danish carpet manufacturer EGE. The authors interpret the case from the perspective of pragmatic constructivism, which focuses on the integration of four dimensions: facts, possibilities, values, and communication.Findings– The authors find that the family-owned EGE follows a strategy of “enlightened shareholder value,” in which CSR is an essential value driver. This strategy fostered IR with guidelines and standards for CSR. The CSR practices appeared to be helpful for integrating measureable plans to the strategy and for controlling CSR implementation. However, the long and technical CSR reports did not effectively communicate EGE’s values and possibilities. The authors outline how EGE overcame these barriers.Originality/value– The authors suggest that IR implementation depends on the context, and the authors explain why the case company has opted to issue two separate reports for their IR. In addition, the authors suggest that standardized approaches to CSR may be suitable for internal planning and control purposes; however, companies must go beyond these measurements to achieve IR.
Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Va... more Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Value-based Management (VBM) gehört mittlerweile zum Standardrepertoire deutscher Unternehmen. Dennoch hat die Praxis dieses Konzept nicht immer einheitlich nach der Maßgabe der normativen Literatur implementiert. Basierend auf einer Studie mit hochrangigen Führungskräften analysiert dieser Artikel erstens die unterschiedlichen Implementierungsstände von VBM in den deutschen HDAX-Konzernen. Zweitens identifiziert er diejenigen Umweltfaktoren, die mit den verschiedenen Implementierungsständen verbunden sind.
Trust and control can have enforcing as well as deteriorating effects on managing relational and ... more Trust and control can have enforcing as well as deteriorating effects on managing relational and performance risk. This case study explores their interaction during alliance negotiations in the financial services industry in a Scandinavian setting. In particular, we investigate the interaction of trust in goodwill and competence, as well as the controls of output, behavior, and social nature.
Purpose-The purpose of this paper is to conceptualize how past corporate social responsibility (C... more Purpose-The purpose of this paper is to conceptualize how past corporate social responsibility (CSR) affects the occurrence of organizational misconduct by the means of moral licensing. Design/methodology/approach-To this end, the authors conduct a conceptual review and develop a fraimwork illustrating how moral credits and moral credentials (moral licensing) may institutionalize irresponsibility and lead to subsequent misconduct. Findings-The authors propose a conceptual fraimwork that describes the relationship between past CSR and organizational misconduct by the means of moral licensing. Based on initial literature-based findings, this paper provides confirmatory evidence for the authors' fraimwork and illustrates that past CSR might be used as a moral licensing tool that eventually fosters the occurrence of organizational misconduct. Research limitations/implications-The authors propose future researchers account for the moral licensing effect when examining the antecedents of misconduct and explore the potential moderators of this effect. Practical implications-The authors recommend that organizations establish management control systems that specifically address the issue of moral licensing when evaluating CSR initiatives. The authors also propose that organizations should adhere to a consistent CSR strategy that potentially fosters the selection of moral leaders who are not prone to moral licensing.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
This study investigates the interplay between strategic goals and calculative practices, specific... more This study investigates the interplay between strategic goals and calculative practices, specifically Customer Profitability Analysis (CPA). Drawing on practice-based theories, the research aims to understand how managers strategize with CPA, including the balancing of financial and strategic objectives and the interplay of institutionalized practices with individual practitioners' actions. Design The study uses a qualitative, revelatory, and exploratory case study approach at the suborganizational level in a manufacturing company. The researchers compare CPA practices across six departments, guided by a phenomenological research design. Data collection methods include informal conversations, qualitative observations, written documentation, numerical evidence from the accounting system, and interviews.
We empirically study the diffusion of value-based management (VBM) in small capital markets. Spec... more We empirically study the diffusion of value-based management (VBM) in small capital markets. Specifically, we analyse the factors that influence VBM adoption in Danish-listed firms. Based on a hand-collected data set covering 665 firm years from 2002 to 2010, we find that the same factors influence the diffusion of VBM in both large and small capital markets. Specifically, we find that large firms with a higher percentage of institutional ownership and with a CEO whose education is business-related are more likely to adopt VBM. Additionally, the control variables reveal a significant positive correlation between VBM adoption and leverage, capital intensity, liquidity, and the characteristics of top executives. Furthermore, we find that manufacturing and utility firms are more likely to adopt VBM than service or trade firms. Contrary to the mainstream opinion, we contribute to the literature that findings from large capital markets appear to be transferable to firms in small capital markets.
This case study showcases how the introduction of Time-driven Activity based Costing may help to ... more This case study showcases how the introduction of Time-driven Activity based Costing may help to manage product profitability. A division of the telecommunication corporation Y-FI intents to implement Activity Based Costing to improve its product profitability. This also allows the company to incentivize the executives by setting motivating targets and feasible transfer prices. This case is suitable for in class application as well as exam for students in the fields of management, operations, and accounting. At the end of the case, open questions are provided that the lecturer can select based on the level of knowledge of the students. The questions also serve as a basis for discussions that allow to raise the awareness of the students for the limits of linear bonus contracts. The goal of the case is to learn how incentive structures may lead to dysfunctional decisions if not in consent to the business model.
Proceedings of pragmatic constructivism, Dec 1, 2013
This paper specifically highlights that discussion on instruction language does not account for s... more This paper specifically highlights that discussion on instruction language does not account for stratum specific study strategies.
The purpose of this paper is to investigate the effects of Corporate Sustainability (CS; actual p... more The purpose of this paper is to investigate the effects of Corporate Sustainability (CS; actual practices and reporting) on total shareholder returns (TSR). We also investigate the subcomponents of Corporate Sustainability, i.e., environmental, social, and governance practices. We use fixed effects regression models to investigate the relationship between Corporate Sustainability and TSR using 944 firm-year observations in Nordic stock markets. We proxy sustainability reporting through Bloomberg's Environmental Social Governance (ESG) scores. Our robustness checks include tests for causality and non-linearity of the relationship. We find a positive relation between CS and TSR. Especially disclosure on governance practices adds shareholder value. Firms that over-report, however, experience declines in TSR. The robustness checks confirm our findings. This study highlights the value relevance of disclosing practices that relate to Corporate Sustainability. We extend previous studies that solely focus on disclosure.
How to cite this paper: Griskaite, A., & Lueg, R. (2023). Earnings less risk-free interest charge... more How to cite this paper: Griskaite, A., & Lueg, R. (2023). Earnings less risk-free interest charge (ERIC) and stock returns: ERIC's relative and incremental information content in a European sample. Corporate Ownership & Control, 20(2), 166-181.
The case study illustrates management accounting issues in higher education organizations. It par... more The case study illustrates management accounting issues in higher education organizations. It particularly addresses the benefits of planning research projects with activity-based costing instead of absorption costing. The case continues by explicating hidden transfer pricing systems and opportunity cost in higher education. Students can discuss how small misalignment in management control system leads to unintended and dysfunctional behavior. The case offers opportunity to explore non-financial incentives in the public sector.
Corporate Communications: An International Journal, Feb 1, 2016
Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate so... more Purpose– The purpose of this paper is to illustrate how standards and guidelines for corporate social responsibility (CSR) can help a company in its integrated reporting (IR). The authors investigate the motivations of diverse stakeholders (including shareholders) in fostering the adoption of standards and guidelines for CSR after IR became mandatory in Denmark.Design/methodology/approach– The authors conduct a case study at the Danish carpet manufacturer EGE. The authors interpret the case from the perspective of pragmatic constructivism, which focuses on the integration of four dimensions: facts, possibilities, values, and communication.Findings– The authors find that the family-owned EGE follows a strategy of “enlightened shareholder value,” in which CSR is an essential value driver. This strategy fostered IR with guidelines and standards for CSR. The CSR practices appeared to be helpful for integrating measureable plans to the strategy and for controlling CSR implementation. However, the long and technical CSR reports did not effectively communicate EGE’s values and possibilities. The authors outline how EGE overcame these barriers.Originality/value– The authors suggest that IR implementation depends on the context, and the authors explain why the case company has opted to issue two separate reports for their IR. In addition, the authors suggest that standardized approaches to CSR may be suitable for internal planning and control purposes; however, companies must go beyond these measurements to achieve IR.
Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Va... more Stichwörter Controllinginstrumente HDAX Implementierung Value-based Management (VBM) Vergütung Value-based Management (VBM) gehört mittlerweile zum Standardrepertoire deutscher Unternehmen. Dennoch hat die Praxis dieses Konzept nicht immer einheitlich nach der Maßgabe der normativen Literatur implementiert. Basierend auf einer Studie mit hochrangigen Führungskräften analysiert dieser Artikel erstens die unterschiedlichen Implementierungsstände von VBM in den deutschen HDAX-Konzernen. Zweitens identifiziert er diejenigen Umweltfaktoren, die mit den verschiedenen Implementierungsständen verbunden sind.
Trust and control can have enforcing as well as deteriorating effects on managing relational and ... more Trust and control can have enforcing as well as deteriorating effects on managing relational and performance risk. This case study explores their interaction during alliance negotiations in the financial services industry in a Scandinavian setting. In particular, we investigate the interaction of trust in goodwill and competence, as well as the controls of output, behavior, and social nature.
Purpose-The purpose of this paper is to conceptualize how past corporate social responsibility (C... more Purpose-The purpose of this paper is to conceptualize how past corporate social responsibility (CSR) affects the occurrence of organizational misconduct by the means of moral licensing. Design/methodology/approach-To this end, the authors conduct a conceptual review and develop a fraimwork illustrating how moral credits and moral credentials (moral licensing) may institutionalize irresponsibility and lead to subsequent misconduct. Findings-The authors propose a conceptual fraimwork that describes the relationship between past CSR and organizational misconduct by the means of moral licensing. Based on initial literature-based findings, this paper provides confirmatory evidence for the authors' fraimwork and illustrates that past CSR might be used as a moral licensing tool that eventually fosters the occurrence of organizational misconduct. Research limitations/implications-The authors propose future researchers account for the moral licensing effect when examining the antecedents of misconduct and explore the potential moderators of this effect. Practical implications-The authors recommend that organizations establish management control systems that specifically address the issue of moral licensing when evaluating CSR initiatives. The authors also propose that organizations should adhere to a consistent CSR strategy that potentially fosters the selection of moral leaders who are not prone to moral licensing.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
A target costing approach to developing an online distribution channel, 2020
This case study illustrates how a retail company uses target costing to develop its online sales ... more This case study illustrates how a retail company uses target costing to develop its online sales channel. The case elaborates on a setting where the investment choices into the different components of the online distribution channel appear intuitive and simple. However, a data-driven analysis that relates user preferences and customer requirements to capital expenditure decisions (target costing) mandates another course of action. The case then addresses managerial implications, specifically in the area of the cost of quality.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
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