The research activities of the Chair of Accounting and Management Control comprise the areas (a) performance measurement and compensation, (b) management control in regulated industries and (c) accounting quality and valuation. The focus on behavioral aspects of accounting represents the common ground of all research fields. We use different methodological approaches to answer our research questions, with a focus on empirical and experimental studies.
(a) Performance measurement and compensation
This research area investigates the design of performance measurement and compensation systems to align company objectives and activities with shareholders’ and stakeholders’ interests. In this context, we analyze activities for a value-based management and reporting, and also investigate how performance measurement and compensation systems affect individual behavior in companies. Our research outcomes offer opportunities for company practice to optimize their incentive systems under consideration of external (regulatory, market-based) and internal (psychological, behavioral) determinants.
(b) Management control in regulated industries
This research area investigates the special requirements of management control in regulated industries, especially in the health care sector. Against the background of an increasing economization of the health care market, institutions and individuals need to consider an increasing business orientation, while holding or even improving the quality of medical and nursing care. In this context, we develop methods and instruments to solve this conflict and to support the strategic positioning of health care institutions, while at the same time considering ethical considerations. Current research projects, e.g., examine how different configurations of management control systems and their respective roles influence organizational tension that arises out of opportunistic behavior and conflicts between organizational members.
(c) Accounting quality and valuation
This field of research covers different topics that aim at increasing the decision usefulness of financial statements. Different presentation formats of financial statements (disclosure vs. recognition) or valuation techniques (fair value accounting) are examined in terms of their reliability, understandability and usefulness for decision making, primarily from an investor perspective. Current research projects, e.g., aim at improving our understanding of how professional investors process the information contained in the income statement according to IFRS. We intend to gain novel insights into the information processing of investors by using innovative methods, like eye-tracking experiments