THIRD ACCOUNTING RESEARCH WORKSHOP

JULY, 4 – 5, 2003

SPONSORED BY: DEUTSCHE FORSCHUNGSGEMEINSCHAFT AND BOSTON CONSULTING GROUP

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EDITORIAL

Dear Participant, welcome to the Third Accounting Research Workshop in Stuttgart. Since our meetings in Cologne, 1998, and Magdeburg, 2000, there has been much progress in the European accounting research community This progress is reflected in the high in quantity and quality of paper submissions for this workshop. We are therefore happy to present a program that will hopefully please you.

Nobody can successfully organize a conference without professional assistance and sponsoring. We therefore gratefully acknowledge both the contributions of our sponsors, the Boston Consulting Group and the German Research Foundation (DFG) and the professional efforts by Sandra Romahn (SIMT) and Francoise Tercier (University of Fribourg). We are especially grateful to Hans Tümmers, president of the SIMT, for hosting our conference in its beautiful building in Stuttgart Plieningen.

We hope that you will find a constructive atmosphere, interesting and stimulating discussions, and that you take the opportunity to meet old and new friends around the workshop, briefly:

We hope that you enjoy the workshop!

Robert F. Göx, University of Fribourg Ulf Schiller, University of Berne

3 ½ ½ PROGRAM

FRIDAY, JULY 4, 2003

13.00 - Ground Floor, Registration SIMT 13.30 - 14.15 Room 7/8, Welcome address: Ulf Schiller, University of Berne, and Hans Tümmers, SIMT First Floor Opening session (Chair: Ulf Schiller, Berne), Pascal Xhonneux , The Boston Consulting Group, Düsseldorf: "Expecation premium and BCG's valuation model" 14.15 - 15.45 Room 7/8, Invited speaker session I (Chair: Ulf Schiller, Berne) First Floor Nahum Melumad, Columbia : "Integrating Managerial and Tax Objectives in Transfer Pricing", Discussant: Frøystein Gjesdal, Bergen. 16.15 - 18.00 Room 7/8, Paper session I a: Contract Theory, (Chair: Robert F. Göx, Fribourg) First Floor Sunil Dutta, Berkeley :"Leading Indicator Variables, Performance Measurement and Short Term versus Long Term Contracts", Discussant: Christian Hofmann, Hannover. Volker Laux , Frankfurt: "The Ignored Performance Measure", Discussant: Jörg Budde, Bonn. Room 13 Paper session I b: Disclosure (emp.), (Chair: Dirk Hachmeister, Hohenheim) Second Floor Marco Trombetta, Madrid: "The Reputational Consequences of better Disclosures Quality", Discussant: Claudio Loderer, Berne. Lale Guler, Texas A&M "The Effect of Disclosure Strategy On Cost of Equity Capital", Discussant: Eric Nowak. 19.00 - Schlosskeller Dinner Uni Hohenheim

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SATURDAY, JULY 5, 2003

09.00 - 10.30 Room 7/8, Invited speaker session II (Chair: Robert F. Göx) First Floor Ronald A. Dye , Northwestern, "Financial Innovations, Hidden Debt, and Firms’ Capital Structure Choices", Discussant: Ralf Ewert, Frankfurt/M. 11.00 - 12.45 Room 13 Paper session II a : Stock Options (Chair: Renate Hecker, Tuebingen) Second Floor Markus C. Arnold, Clausthal: "How to use stock and stock options for interest alignment: managerial investment behavior and portfolio considerations " Discussant: Barbara Pirchegger, Magdeburg Dirk Simons , Bielefeld: "Costs, Benefits and Tax-induced Distortions of Stock Options Plans", Discussant: Christoph Kaserer, Munich Room 7/8, Paper session II b: Budgeting & Transfer Pricing (Chair: Michael Bromwich, LSE) First Floor Stephan Lengsfeld, Tuebingen: "Duopolistic Competition, Taxes, and the Arm's- Length Principle", Discussant: Wolfgang Lein inger, Dortmund Thomas Pfeiffer, Vienna: "Capital Budgeting and the Option to Wait: Ex-Ante- versus Ex-Post Capital Rationing", Discussant: Anne Chwolka, Bielefeld. 14.00 - 15.45 Room 7/8, Paper session III: Accounting Standards and Governance Issues (Chair: First Floor Hans-Ulrich Küpper, Munich) Joshua Ronen, New York University: "Financial Statement Insurance", Discussant, Ernst Maug, Berlin Alfred Wagenhofer, Graz: "Economic Effects of Tightening Accounting Standards to Restrict Earnings Management", Discussant: Stefan Wielenberg, Bielefeld. 16.15 - 18.00 Room 13 Paper session Iv a: Investment Incentives (Chair: Hermann Jahnke, Bielefeld) Second Floor Gunther Friedl, Munich: "Growth Options, Organizational Slack, and Managerial Investment Incentives", Discussant: Heike Schenk-Mathes, Clausthal. Christian Gaber, Frankfurt: "Project Selection, Income Smoothing and Bayesian Learning, Discussant: Jens Robert Schöndube, Magdeburg. Room 7/8, Paper session IV b: Disclosure (theoretical) (Chair: Christian Ernst, Frankfurt) First Floor Jeroen Suijs , Tilburg: "Voluntary disclosure and risk sharing", Discussant: Michael Krapp, Augsburg. Evelyn Korn, Tuebingen: "Knowing Whom to Trust. Voluntary disclosure of Partially Verifiable Information in the Course of an Initial Public Offering", Discussant: Alwine Mohnen, Cologne. From 18.00 SIMT BBQ in the Garden of SIMT

5 ½ ½ INFORMATION

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LIST OF PARTICIPANTS

Allmendinger, Silvia, Budde, Jörg, Universität Zürich, University of Bonn, Inst. für Rechnungswesen und Department of Economics, Controlling, Adenauerallee 24-42, Plattenstrasse 14, 53113 Bonn, Germany, 8032 Zürich, Switzerland, email: [email protected], email: [email protected], phone: +49-228-739247, phone: +41-1-6342984 fax: +49-228-735048. fax: +41-1-6344912. Chwolka, Anne, Arnold, Markus C., University of Bielefeld, Clausthal University of Technology, Department of Economics and Business Department of Economics and Business Administration, Administratiion, Postfach 10 01 31, Julius-Albert-Str. 2, 33501 Bielefeld, Germany, 38678 Clausthal-Zellerfeld, Germany, email: [email protected] email: [email protected], bielefeld.de, phone: +49-5323-727605, phone: +49-521/1063931, fax: +49-5323-727699. fax: +49-521/1066036. Berghäuser, Marcus, Crasselt, Nils, University of Cologne, Ruhr-Universität Bochum, Department of Management Accounting, LS f. Internationale Albertus Magnus Platz, Unternehmensrechnung, 50923 Cologne, Germany, Universitätsstr.150, GC 2/135, email: [email protected], 44801 Bochum, Germany, phone: +49-221/470-4451, email: [email protected], fax: +49-221/470-5012. phone: +49-234/3225519, Bromwich, Michael, fax: +49-234/3214228. London School of Economics, Diaw, Khaled, Department of Accounting and Finance, Tilburg University, Houghton Street, Accounting and Accountancy, WC2A 2AE London, UK, Warandelaan 2, email: [email protected], 5000LE Tilburg, Netherlands, phone: 0044-2079557323, email: [email protected], fax: 0044-209557323. phone: 0031-13-4663339, fax: 0031-13-4668001.

7 ½ ½ PARTICIPANTS

Dutta, Sunil, email: [email protected], University of California at Berkeley, phone: 0047-55959687, Walter A. Haas School of Business, 545 fax: 0047-55959320. Student Services Building # 1900, Foros, Oystein, 94720-1900 Berkeley, CA, USA, Norwegian School of Economics and email: [email protected], Business Administration, Departement phone: 001-510-643-1229, of Economics, fax: 001-510-643-1412. Helleveien 30, Dye, Ronald A., 5045 Bergen, Norway, Northwestern University, Kellog School email: [email protected], of Management, Dept. of Accounting phone: 0047-91750707, Information & Management, fax: 0047-55959543. 6229 Jacobs Center,6th Floor, Friedl, Gunther, 2001 Sheridan Rd, University of Munich, IL 60208 Evanston, USA, Inst. of Production Management and email: [email protected]. Management Accounting , Ernst, Christian, Ludwigstr. 28, RG, Goethe-University of Frankfurt/M., 80539 Munich, Germany, Chair of Controlling and Auditing, email: [email protected], Mertonstr. 17-25, phone: +49-89/21803889, 60054 Frankfurt/M., Germany, fax: +49-89/89344054. email: [email protected], Gaber, Christian, phone: +49-69/798-28482. Universität Frankfurt/Main, Ewert, Ralf, Accounting and Auditing, Goethe-University of Frankfurt/M., Mertonstr. 17-25, Chair of Controlling and Auditing, 60325 Frankfurt/M., Germany, Mertonstr. 17-25, email: [email protected], 60054 Frankfurt/M., Germany, phone: +49-69/798-23176, email: [email protected], fax: +49-69/798-23618. phone: +49-69/798-23880, Gabor, Günther, fax: +49-69/798-22718. Universität Zürich, Fjell, Kenneth, Inst. f. Rechnungswesen u. Controlling, Norwegian School of Economics and Plattenstrasse 14, Business Administration, Dept. of 8055 Zürich, Schweiz, Accounting, Auditing & Law, email: [email protected], Helleveien 30, phone: +41-1-6342984, 5045 Bergen, Norway, fax: +41-1-6344912. ½ 8 2 PARTICIPANTS ½

Gjesdal, Fröystein, phone: +41-31-6314714, Norwegian School of Economics and fax: +41-31--6314780. Business Administration, Dept. of Hecker, Renate, Accounting, Auditing & Law, University of Tübingen, Helleveien 30, International Accounting and Auditing, 5045 Bergen, Norway, Nauklerstr. 47, email: [email protected], 72074 Tübingen, Germany, phone: 0047-55959316, email: [email protected], fax: 0047-55959316 phone: +49-7071/29775977, Göx, Robert F., fax: +49-7071/295102. University of Fribourg, Henze, Frank, Chair of Managerial Accounting, Universität Tübingen, Fakultät f. Av. De l'Europe 20, Wirtschaftswissenschaft, 1700 Fribourg, Switzerland, Graduiertenkolleg, email: [email protected], Nauklerstr. 47, phone: +41-26/3008310, 72074 Tübingen, Germany, fax: +41-26/3009659. email: [email protected], Guler, Lale, phone: +49-7071/29-78173, Texas A&M University, fax: +49-7071/5838. Mays Business School, Hofmann, Christian, TAMU 4353, University of Hannover, 77843 College Station, USA, Chair for Managerial Accounting, email: [email protected], Königsworther Platz 1a, phone: 001-979/845-6070, 30167 Hannover, Germany, fax: 001-979/845-0028. email: [email protected] Hachmeister, Dirk, hannover.de, Universität Hohenheim, phone: +49-511/7628112, Inst. für Betriebswirtschaftslehre 510C, fax: +49-511/7628153. 70593 Stuttgart, Germany, Jahnke, Hermann, email: [email protected], Universität Bielefeld, Fakultät für phone: +49-711/459-2912, Wirtschaftswissenschaften, fax: +49-711/459-2721. Postfach 10 01 31, Hagmüller, Jürgen, 33501 Bielefeld, Germany, Universität Bern, Inst. f. email: [email protected], Unternehmensrechnung & Controlling, phone: +49-521/106-3928, Engehaldenstrasse 4, fax: +49-521/106-6036. 3012 Bern, Schweiz, email: [email protected],

9 ½ 2 ½ PARTICIPANTS

Kaserer, Christoph, Management Accounting , Tech. University Munich, Ludwigstr. 28, RG/V, Department for Financial Management 80539 München, Germany, and Capital Markets, email: [email protected], Arcisstr. 21, phone: +49-89-2180-2093, 80333 Munich, Germany, fax: +49-89-344-054. email: [email protected], Laux, Volker, phone: +41-89/28925490, Johann Wolfgang Goethe-Universität, fax: +41-89/28925488. LS für Controlling, Korn, Evelyn, Mertonstr. 17-25, Eberhard Karls Universität Tübingen, 60054 Frankfurt/M., Germany, Accounting Department, email: [email protected], Nauklerstr. 47, phone: +49-69-79823170, 72074 Tübingen, Germany, fax: +49-69-79822718. email: [email protected], Leininger, Wolfgang, phone: +41-7071/2974147, Dortmund University, fax: +41-7071/295838. Department of Economics, Krapp, Michael, Vogelpothsweg 87, University of Augsburg, 44227 Dortmund, Germany, Inst. für Statistik und Math. email: [email protected] Wirtschaftstheorie, dortmund.de, Universitätsstr. 16, phone: +49-231-7553297, 86135 Augsburg, Germany, fax: +49-231-7553027. email: [email protected] Lengsfeld, Stephan, augsburg.de, Universität Tübingen, phone: +49-821-5984146, Unternehmensrechnung und Controlling, fax: +49-821-5984227. Nauklerstr. 47, Kühn, Jochen, 72074 Tübingen, Germany, Universität Zürich, Inst. für email: [email protected], Rechnungswesen und Controlling, phone: +49-7071/2978171, Plattenstrasse 14, fax: +49-7071/295838. 8032 Zürich, Schweiz, email: [email protected], phone: +41-1/6342984, fax: +41-1/6344912. Küpper, Hans-Ulrich, Universität München, Inst. of Production Management and

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Loderer, Claudio, email: [email protected], Universität Bern, phone: +1-212-854-2475, Inst. für Finanzmanagement, fax: +1-212-202-7898. Engehaldenstrasse 4, Mohnen, Alwine, 3012 Bern, Germany, University of Cologne, Department of email: [email protected], Business Adm.and Pers. Economics, phone: +41-31/6313775, Herbert-Lewin-Strasse 2, fax: +41-31/6318421. 50931 Cologne, Germany, Lukas, Christian, email: [email protected], Otto-von-Guericke Universität phone: +49-221-4706310, Magdeburg, Fakultät für fax: +49-221-4705078. Wirtschaftswissenschaft Moitzi, Bernhard, Universitätsplatz 2, University of Graz, Inst. of Management 39106 Magdeburg, Germany, Accounting and Control, email: [email protected], Universitätsstrasse 15, phone: +49-391/6711694, 8010 Graz, Austria, fax: +49-391/6711137. email: [email protected], Martini, Jan Thomas, phone: +43-316-380-3505, Universität Bielefeld, fax: +43-316-380-9565. Fakultät für Wirtschaftswissenschaften, Nowak, Erik, Postfach 10 01 31, Marburger Str. 23, 33501 Bielefeld, Germany, 60487 Frankfurt, Germany, email: [email protected], email: [email protected], phone: +49-521/106-3928, phone: +49-171-6219913, fax: +49-521/106-6036. fax: +49-69-97781849. Maug, Ernst, Pfeiffer, Thomas, Humboldt-Universität zu Berlin, University of Vienna, Department of Inst. für Konzernmanagement, Business Studies, Brünner Str. 72, Spandauer Str. 1, 1210 Vienna, Austria, 10178 Berlin, Germany, email: [email protected], email: [email protected], phone: +43-14277/38001, phone: +49-30 2093 5641, fax: +43-14277/38004. fax: +49-30 2093 5641. Melumad, Nahum, Columbia Business School, Columbia University, Chair of Accounting Division, Uris Hall, NY 10027 3022 Broadway, USA,

11 ½ 2 ½ PARTICIPANTS

Pirchegger, Barbara, Magdeburg, Management Accounting Otto-von.Guericke Universität Section, Universitätsplatz 2, Magdeburg, Fakultät für 39106 Magdeburg, Germany, Wirtschaftswissenschaft, email: [email protected] Universitätsplatz 2, magdeburg.de, 39106 Magdeburg, Germany, phone: +49-391-67-18726, email: [email protected] fax: +49-391-67-11137. magdeburg.de, Simons, Dirk, phone: +49-391-67-18728, University of Bielefeld, Department of fax: +49-391-67-11137. Business Administration and Economics, Ronen, Joshua, PO Box 100131, New York University, Leonard N. Stern 33501 Bielefeld, Germany, School of Business, Accounting, email: [email protected], Tisch Hall, 40 West 4th Street, Suite phone: +49-521/1063930, 313, NY 10012 New York, USA, fax: +49-521/1066036. email: [email protected], Suijs, Jeroen, phone: 001-212-998-4144, Tilburg University, Department of fax: 001-212-995-4230. Accounting and Accountance, Schenk-Mathes, Heike Yasmin, PO Box 90153, Clausthal University of Technology, 5000 LE Tilburg, Netherlands, Department of Economics and Business email: [email protected], Administration, phone: 0031-13/4662441, Julius-Albert-Str. 2, fax: 0031-13/4668001. 38678 Clausthal-Zellerfeld, Germany, Trombetta, Marco, email: heike.schenk-mathes@tu- Universidad Carlos III de Madrid, clausthal.de, Departamento de Economia de la phone: +49-5323-727604, Empresa, fax: +49-5323-727699. Calle Madrid 126, Schiller, Ulf, 28903 Getafe (Madrid), Spain, University of Berne, email: [email protected], Inst. of Accounting and Control (IUC), phone: 091/6249642, Engehaldenstrasse 4, fax: 091/6249607. 3012 Berne, Switzerland, Tümmers, Hans, mail: [email protected], SIMT, Stuttgart, phone: +41-31-6313735, Filderhauptstr. 142, fax: +41-31-6313780. 70599 Stuttgart, Germany Schöndube, Jens Robert, email: [email protected] Otto-von-Guericke Universität phone: +49-711-45100130.

½ 12 PARTICIPANTS ½

Wagenhofer, Alfred, University of Graz, Inst. of Management Accounting and Control, Universitätsstrasse 15, 8010 Graz, Austria, email: [email protected], phone: +43-316/3803500, fax: +43-316/3809565. Walker, Björn, Universität Bern, Inst. f. Unternehmensrechnung & Controlling, Engehaldenstrasse 4, 3012 Bern, Schweiz, email: [email protected], phone: +41-31-631-4713, fax: +41-31-631-3780. Wielenberg, Stefan, Universität Bielefeld, Wirtschaftswissenschaften, Externes Rechnungswesen, Postfach 10 01 31, 33501 Bielefeld, Germany, email: [email protected] bielefeld.de, phone: +49-521/1064852, fax: +49-521/1066496. Wunsch, Johannes, University of Fribourg, Chair of Managerial Accounting, Av. De l'Europe 20, 1700 Fribourg, Switzerland, email: [email protected], phone: +49-26/3008313, fax: +49-26/3009659. Xhonneux, Pascal, The Boston Consulting Group, Düsseldorf, Germany. email: [email protected]

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INFORMATION ½

MANAGEMENT SCIENCE

Department Editor for Accounting: Stefan Reichelstein, Stanford University

Associate Editors: Shannon Anderson, Rice University Jonathan Glover, Carnegie Mellon University V.G. Narayanan, Harvard University Madhav Rajan, Stanford University

Mission Statement:

This department seeks to publish innovative research on the interrelation between managerial decisions and accounting information. This agenda includes much of the current research in managerial accounting as it relates to cost-and profitability analysis, internal pricing, performance measurement and control. The agenda also includes parts of financial accounting as it examines the decision usefulness of accounting information to external parties such as the firm’s investors, creditors, suppliers, competitors and customers.

In terms of research methodology, the department invites a range of alternative approaches including theoretical, empirical and experimental studies. Field studies are also welcome provided the insights from the study are likely to extend beyond the particular setting.

Since Management Science publishes articles in several management disciplines, the editors particularly encourage the submission of manuscripts that are not only of interest to accounting researchers but also to the wide readership in neighboring disciplines such as Operations Management, Strategy and Marketing.

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