• Competitive Pricing in Markets with Different Overhead Costs: Concealment or Leakage of Cost Information?

      Cardinaels, Eddy; Roodhooft, Filip; Warlop, Luk; Van Herck, Gustaaf (Journal of Accounting Research, 2008)
    • Diagnostic market feedback attenuates the benefits of ABC for competitive price setting in a heterogeneous market

      Roodhooft, Filip; Cardinaels, Eddy; Warlop, Luk (Journal of Management Accounting Research, 2004)
    • Drivers of cost system development in hospitals: results of a survey

      Cardinaels, Eddy; Roodhooft, Filip; Van Herck, Gustaaf (2004)
      While many hospitals are under pressure to become more cost efficient, new costing systems such as Activity-based costing (ABC) may form a solution. However, the factors that may facilitate (or inhibit) cost system changes towards ABC have not yet been disentangled in a specific hospital context. Via a survey study of hospitals, we discovered that cost system development in hospitals could largely be explained by hospital specific factors. Issues such as the support of the medical parties towards cost system use, the awareness of problems with the existing legal cost system, the way hospitals and physicians arrange reimbursements, should be considered if hospitals refine their cost system. Conversely, ABC-adoption issues that were found to be crucial in other industries are less important. Apparently, installing a cost system requires a different approach in hospital settings. Especially, results suggest that hospital management should not underestimate the interest of the physician in the process of redesigning cost systems. Keywords: Activity Based Costing, Organizational Change, Cost Control, Hospital context
    • Drivers of cost system development in hospitals: results of a survey

      Cardinaels, Eddy; Roodhooft, Filip; Van Herck, Gustaaf (2004)
    • Drivers of cost system development in hospitals: results of a survey

      Cardinaels, Eddy; Roodhooft, Filip; Van Herck, Gustaaf (Health Policy, 2004)
    • Het voordeel van meer nauwkeurige kosten - rapporten voor de beslissingnemer in de onderneming

      Cardinaels, Eddy; Roodhooft, Filip; Warlop, Luk; Van Herck, Gustaaf (Fiducie, 2003)
    • Literature review: The impact of auditor interactions on audit quality

      Cardinaels, Eddy; Reusen, Evelien; Goris, Jeffrey; Stouthuysen, Kristof (2020)
      The judgment and decision-making literature in auditing largely focuses on individual auditor judgments. However, auditors do not work in isolation. They interact with other auditors in audit engagements and with other participants in the financial reporting process. For this reason, scholars have called for more research on how the people, tasks, and environment that auditors interact with influence their performance and hence, the audit quality of their work (Nelson & Tan, 2005; Trotman, Bauer & Humphreys, 2015). This review identifies three specific issues related to these influences that, we believe, warrant additional research and consideration. The first two issues relate to between-auditor interactions within the audit firm. The third issue relates to interactions with groups outside the firm
    • Market feedback, cost system choice and competitve pricing: the advantage of not being a leader

      Cardinaels, Eddy; Roodhooft, Filip; Warlop, Luk; Van Herck, Gustaaf (2004)
      This study experimentally investigates the value of cost report accuracy in an interactive pricing context. Market agents received feedback about their own profits via either a volume-based costing or a more accurate activity-based costing report. They also received a typical market report containing the performance of their rivals. While prior work suggested that market discipline and learning from salient competitors can overcome performance decrements due to inaccurate costing, our results imply that the corrective nature of market feedback depends on the decision maker's role in the competitive play. Compared to other participants, decision makers endowed with the role of a 'reputational' market leader are less effective in screening available market feedback because they predominantly fixate on their own cost data. Even when receiving biased volume-based costing, reputational leaders ignore valuable market signals of opponents having access to more accurate cost data. Consequently other market players can take advantage of them.
    • Practice note: Copycat behavior by junior auditors – The impact of their senior’s working style and the role of promotion incentives

      Cardinaels, Eddy; Reusen, Evelien; Goris, Jeffrey; Stouthuysen, Kristof (2020)
      As a key attribute to audit quality, regulators specify that more experienced staff (i.e. managers, senior auditors) should provide less experienced staff with appropriate coaching and on-the-job training (IAASB 2014). It is fairly common for junior auditors to start their auditing career by mimicking a more senior person who performs similar tasks; as the saying goes, “Monkey see, monkey do” (Cannon, 2016). Yet, while imitation is an inherent human tendency, limited evidence exists on the impact of such imitative behavior on the quality of an individual auditor’s judgment. The objective of our research project is to examine the extent to which mimicking behavior occurs in junior–senior auditor relationships and its consequences for audit quality. In particular, we advance the argument that this imitation tendency may lead junior auditors to follow seniors’ auditing practices, even when those practices are not always ideal. We also examine whether promotion opportunities for the junior can be an important contributor in mimicking an audit style of a senior (which in turn would affect audit quality). The tendency to imitate their senior – even though his working practices might not be ideal - might be higher when the direct senior has a strong voice in the promotion decision of the junior. The findings of this study are expected to provide valuable insights and r recommendations for practice
    • Practice note: Imitatiegedrag bij junior auditors: De impact van de werkstijl van de senior en de rol van promotiedruk

      Cardinaels, Eddy; Reusen, Evelien; Goris, Jeffrey; Stouthuysen, Kristof (2020)
      Om audit kwaliteit te waarborgen, hebben meer ervaren auditors (i.e., senior auditors) de taak om minder ervaren auditors (i.e., junior auditors) tijdig te beoordelen en te voorzien van gepaste coaching en ‘on-the-job’ training (IAASB 2014). Het geven van het goede voorbeeld door de senior is hierbij belangrijk, zeker wanneer we erkennen dat junior auditors in het begin van hun carrière vaak geneigd zijn het gedrag en de werkstijl van senior auditors te imiteren. Hoewel het imiteren van anderen deel uitmaakt van het menselijke gedrag, hebben we tot op heden nog maar weinig inzicht in hoe imitatiegedrag de oordeelsvorming bij junior auditors beïnvloedt. Het doel van dit onderzoeksproject is om de rol van imitatiegedrag in junior-senior auditor relaties na te gaan en inzicht te krijgen in de gevolgen hiervan op auditkwaliteit. Tegelijkertijd onderzoeken we ook hoe promotiedruk dit imitatiegedrag kan versterken. De neiging van junior auditors om hun senior te imiteren – zelfs wanneer deze laatste zijn werkstijl niet in lijn is met de verwachte professioneelkritische houding – kan meer uitgesproken zijn wanneer de senior auditor een doorslaggevende stem heeft bij toekomstige promotiebeslissingen. De bevindingen van deze studie zullen leiden tot waardevolle inzichten voor het wereldwijde auditberoep.
    • The benefits of cost system in a leader/follower pricing duopoly

      Roodhooft, Filip; Cardinaels, Eddy; Warlop, Luk; Van Herck, Gustaaf (2003)
    • The joint effects of customer profitability reports and sales support diversity in effective customer pricing

      Cardinaels, Eddy; Roodhooft, Filip; Warlop, Luk; Van Herck, Gustaaf (2004)
      This paper experimentally investigates the value-enhancing effects of more accurate customer profitability analysis (CuPA) reports on customer pricing decisions and firm profitability when customers place different demands on the firm's support functions. Activity-based driven CuPA reports are contrasted against less accurate reports, either based on traditional volume-based costing or on aggregated feedback. Cost complexity of the environment was further varied by either low or high diversity in resource usage across customers depending on whether or not the most costly type of customer always consumed more resources in each of the various support functions of the firm. Results suggest that the diversity in resource requirements serves as an important 'contextual factor' for CuPA to have incremental value over the less accurate report types. Only when usage of sales support becomes more diverse, CuPA provides strong opportunities for learning resulting in more effective customer pricing and profit improvement. Results further show some profit benefits of volume-based costing reports. Even though cost allocations are more distorted, they still perform better than aggregated reports that do not allocate marketing overhead, but only in a more complex cost settings. Keywords: Customer profitability, pricing, sales support diversity, decision making. JEL-classification: C91, D83, M31, M41, M49
    • The Value of Activity-Based Costing in competitive pricing decisions

      Cardinaels, Eddy; Roodhooft, Filip; Warlop, Luk (Journal of Management Accounting Research, 2004)