An exploration of the competitive value of an accurate accounting system

Author: Shane Moriarity

Source: Abacus, Volume 41, Number 1, February 2005 , pp. 40-54(15)

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Abstract:

The value of an accurate accounting system is compared to one that introduces a cross-subsidy. In a two-product experimental market the accurate system is shown to provide value when a competitor has a system that introduces a cross-subsidy. The value appears to arise from better product-mix decisions. But it is likely that this value is transitory, explaining in part why observational studies of practice have found it difficult to document sustained value from improved information systems.

Keywords: Accounting; System; Theory

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-6281.2005.00168.x

Affiliations: 1: University of Oklahoma and Visiting Research Fellow at Unitec New Zealand

Publication date: 2005-02-01