This study investigates the association between the accuracy of revenue forecasts and the accounting activities of budget preparation and internal accounting report preparation. While both budgets and internal reports are widely used, empirical evidence concerning their influence on the prediction of future performance is extremely limited. Consistent with the availability of formal accounting information improving predictive performance, we observe that internal accounting report preparation significantly improves forecast accuracy. However, partitioning firms by forecasting difficulty reveals that the accuracy benefits from internal reports preparation are only observed for firms with high uncertainty. Further, the results provide limited support for linkages between budget preparation and forecast accuracy. While we observe the use of budget preparation and internal accounting report preparation are a function of firms' structural and environmental characteristics, firms do not appear to adopt these activities as a function of forecasting difficulty, but rather as a function of predicted changes in future growth.
Business executives and academics frequently criticize budget‐based compensation plans as providing incentives for subordinates to build slack into proposed budgets. In this paper, we examine whether either of two practices—using budgets to allocate scarce resources, or providing information about co‐workers—reduces budget slack and increases subordinate performance when organizations use budgets for performance evaluation. The results from our experiment show that using budgets for both resource allocation and performance evaluation not only eliminates budget slack, but also increases subordinates' effort and task performance. Additionally, we find that an internal reporting system that provides information about subordinates' budgets and performance to their co‐workers mitigates budget slack when superiors do not use budgets as a basis for resource allocation. These results highlight the synergies between the planning (resource allocation) and control (performance evaluation) functions of managerial acc...
ABSTRACTUNC-45A is an ubiquitously expressed protein highly conserved throughout evolution. Most of what we currently know about UNC-45A pertains to its role as a regulator of the actomyosin system...