... other managers' prior actions, however, can depend on its aggregation. This study provides theory-consistent experimental evidence of the effects of accounting information aggregation on managerial cooperation when managers face incentives against cooperation. Based on the psychology theory of non...

...Anil Arya; Jonathan C. Glover ABSTRACT Aggregation, and minimizing associated information loss, is a pervasive theme in accounting. In contrast, this paper highlights some potential benefits of aggregation, using simple examples to illustrate ideas from a number of recent papers in a parsimonious...

... is decreasing in the correlation between the projects' profitability. The intuition for this finding is (positive) correlation diminishes the diversification benefit found with aggregation. Finally, we sketch a setting with heterogeneous projects that differ with respect to ex ante profitability. We...

...Steven T. Schwartz; Eric E. Spires; David E. Wallin; Richard A. Young ABSTRACT We conduct two experiments to study the effect of aggregated budget proposals on budgetary slack when superiors cannot commit to an acceptance policy. Prior research on similar settings suggests preferences for fairness...