Accounting & Markets

More retail failures on the cards for 2020

Australian retailers need to evolve their business models – otherwise we’ll continue to see more retail insolvencies in 2020. That’s the message from Andrew Spring, a retail insolvency specialist. “Retail failures aren’t new and it’s […]

Management Accounting Frontiers

Editorial: Only a Three-Legged Stool? A Review of the Concept of Alignment in the Economics of Performance Management

This editorial revisit the concept of alignment within the agency theoretic view of organisational performance management. Based on an analysis of a real-life case, we examine how far the theoretical reasoning based on the concept of ‘three-legged stool’ is practically relevant. Findings of our case suggests that while there is seemingly misalignment among the three established structures of performance evaluation, decision right allocation and incentive compensation, the ‘misalignment’ is ‘repaired’ with the support of two other governance structures namely, HR and CRM policies. We believe that the design of performance management is not to be confined to the ‘three-legged stool’ but practically extended to other forms of governance structures. […]

Management Accounting Frontiers

Using Fund Transfer Pricing as a Performance Measurement System in the Financial Service Industry

As a response to the financial crisis of 2007-2008, financial service industry regulators have commonly requested financial service industry to implement fund transfer pricing (FTP) mechanisms. Despite the importance of the topic as highlighted in the practitioners’ literature since the 2000s, the use of FTP as a performance measurement system has been understudied. To add to our understanding of such mechanisms in the financial service industry, this paper demonstrates, through an analytical model, how FTP can be used as a performance measurement system in financial institutions. More importantly, this paper illustrates how FTP can be used for overcoming the distortions caused due to the transfer of funds between the business units. […]