The Relative Cost Efficiency of Stock versus Mutual Thrifts: A Bayesian Approach

The relative cost efficiency of the mutual versus stock forms of ownership for thrifts has been a relevant issue in an era of deregulation and competition in the financial services industry. In this study, Bayesian‐based Markov chain Monte Carlo (MCMC) resampling methods are used to solve a stochastic cost frontier model and effectively determine cost efficiencies for the stock and mutual thrift groups. We find a statistically significant difference between both the cost frontiers and the cost efficiencies of the two groups, with the stock group operating at the lower‐cost point. Agency problems explain a significant portion of the cost efficiency difference. Capital structure differences, though not helping to explain differences in cost efficiency, do help to explain differences in cost structure and managerial attitudes toward risk.     

Understanding cost differences in the public sector—a cost drivers approach

Estimation of cost causality has always been an important part of the accountant’s work. This includes the identification, classification and estimation of factors causing a change in the total cost of a related cost object. In the recent literature these factors are called cost drivers. Different approaches and conceptual frameworks for understanding cost causality are found in the economics, strategy and accounting literature. This paper examines different cost driver approaches in a public sector setting. The study is based on data from primary and secondary schools in the four largest cities in Norway. The findings show that a strategic management accounting approach provides a framework for selecting a broader set of explanatory variables than the traditional cost estimation literature. This set includes product attributes, institutional factors and government policy as cost drivers in the public sector.     

THE NATURE AND MEASUREMENT OF COST SAVINGS IN CURRENT VALUE ACCOUNTING SYSTEMS*

The paper considers the nature and measurement of cost savings in current value (cost) accounting systems. In general, current cost accounting proposals have interpreted cost savings in an unnecessarily restrictive way. For example, current cost accounting does not allow for the possibility that a company which borrows at a fixed rate of interest may derive significant cost savings if interest rates increase during the term of the loan. The measurement of cost savings on debt is considered in this paper. In addition, it draws attention to the concentration of current cost accounting proposals on cost savings at the expense of the analogous losses which may arise in relation to revenue.     

作业成本法在卷烟制造业成本核算中的应用研究

通过充分的调研,论文在对卷烟制造业现行成本核算方法存在的问题进行分析的基础上,论述了卷烟制造业运用作业成本法的必要性和可行性,提出了作业成本法运用于卷烟制造业的程序、成本计算模型,并对运用结果进行测试和分析,总结出：卷烟制造业在运用作业成本法进行成本核算时,应合理确定资源成本动因和作业成本动因；应合理摊配剩余作业成本；应注重作业成本法中成本标的的层次性,以及作业成本在完工产品与在产品之间的合理分配。只有这样,才能使卷烟制造业的成本核算合理、科学,为成本管理提供相关、可靠信息。     

The Political Determinants of the Cost of Equity: Evidence from Newly Privatized Firms

In this paper, we investigate the political determinants of the cost of equity using a unique data set of 236 firms privatized between 1987 and 2006 in 38 countries. We find robust evidence that the cost of equity is increasing in government ownership. We also show that the cost of equity is significantly related to political orientation and the extent of government expropriation. Furthermore, we report a less pronounced effect of state ownership on the cost of equity in more populist governments and in more financially developed countries, in addition to a more pronounced effect of state ownership on the cost of equity when the risk of government expropriation is higher. Results from an event study examining the replacement of left‐wing governments by right‐wing governments suggest a lower cost of equity in more financially developed countries and a higher cost of equity in more autocratic countries and in countries with a high risk of government expropriation. Finally, we find that chief executive turnover is associated with a higher cost of equity in more autocratic countries.     

税收成本及优化分析

税收成本包括征税成本、纳税成本和社会成本。从总体上看,当前由于受诸多因素的影响,我国的税收成本偏高,暴露出一些亟待解决的问题。为此,应多方面寻求降低税收成本的途径,逐步提高税收工作效率,充分发挥税收的职能作用。     

Optimal Disbursement of a Sunk Resource and Decentralised Cost Allocation

We consider whether the allocation of the sunk cost of a central resource to operating divisions can be consistent with economically optimal resource consumption decisions. When it is recognised that the central resource is scarce, one may, in principle, defend the allocation of sunk cost, if it measures the opportunity cost of usage. However, typically it has been proposed that such allocations are, at best, a proxy for opportunity cost. Applying classical control theory techniques in a wide range of operating environments, we are able to identify cost allocations that exactly equal opportunity cost. Hence, for our model environment, we provide a rationale for sunk cost allocation in terms of guiding optimal decisions, in contrast to the traditional defence in terms of providing a proxy for opportunity cost. We demonstrate clearly how cost allocations are related to opportunity costs, and identify the circumstances under which the allocation of full costs or alternatively a fixed proportion (related to acquisition conditions) of costs, results in the implementation of economically optimal resource consumption decisions.     

The Impact of Internet Investor Relations on the Cost of Capital: Evidence from Companies Listed on the Johannesburg Stock Exchange

Given the voluntary nature of internet investor relations (IIR), the decision to engage can be viewed in terms of a cost–benefit framework. This study aims to investigate one potential benefit of IIR: a reduction in the cost of capital (measured as the weighted average cost of equity and cost of debt). Contrary to the majority of related studies to date that have used either an indirect proxy or examined the annual report, this study entails a content analysis of corporate websites using a comprehensive measurement instrument. IIR is found to be significantly and negatively related to the cost of debt. Although the level of IIR is also found to be significantly and negatively related to the cost of equity, this association only prevails after an adjustment is made to the cost of equity of smaller companies. Finally, the level of IIR is found to be significantly and negatively related to the cost of capital, both before and after an adjustment to the cost of equity of smaller companies is made. Although the current study deals with Johannesburg Stock Exchange data, the problem investigated is universal in nature and according to our knowledge, this is the first study to comprehensively examine the impact of IIR on the cost of capital.     

Cost of Equity and S&P 500 Index Revisions

We examine how the cost of equity changes when firms are added to or removed from the S&P 500 Index during index revisions. Newly added firms experience a significant decline in the cost of equity, while recently removed firms show a significant increase. Liquidity improves for addition firms and declines for removed firms. Addition firms also experience a decline in shadow cost. Changes in cost of equity for included firms are explained by changes in liquidity, shadow cost, and firm size. Finally, included firms with greater investment opportunities benefit more from the reduction in cost of capital.     

降低保险公司营业费用的途径选择

营业费用居高不下是困扰我国寿险业发展的问题之一。寿险营业费用是保险费的重要组成部分 ,在保费的三大决定因素中是保险公司自身最可控的一个因素。本文从分析组成营业费用的三大费用即新合同费、合同维持费、收费费用出发 ,通过研究其各自对保费影响的权重 ,得出结论 :从降低合同维持费的途径来降低营业费用从而达至降低保险费的目的是最经济的。要降低合同维持费用 ,必须提高管理效率 ,改善IT系统 ,实现可持续开发     

Investment-Based Cost Accounting as a Fundamental Basis of Decision-Oriented Management Accounting

Decision making concerns over cost allocations, especially common cost allocations, have a long history. They are well canvassed in Thomas (1969 ) and Wells (1978 ). This article revisits the cost allocation debate, albeit in a new setting, and rehearses arguments relevant to long- and short-term decision contexts. Here a means is proposed to address those problems, namely to adopt the investment-based approach to cost accounting. This approach draws on ideas of Hotelling (1925 ), Preinreich (1938 ) and Schneider (1961 ), and applies the notion of net present value in another setting, namely to cost accounting theory. Research has revealed no discussion of this in the Anglo-American literature. This article shows analytically that the investment-based approach offers a general basis for decision-oriented cost accounting, as it combines investment theory with cost accounting and thereby connects long-term with short-term decisions. While reviewing primarily European literature, it also examines several Anglo-American works. The analysis reveals how for three classical decision problems—production program planning, purchase order lot sizes, and break-even price limits—two different types of costs, namely depreciation and material costs, have to be based on cash flows and net present value. The proposed investment-based approach permits an examination of the extent to which cost accounting concepts and cost information are relevant to those decisions. This theoretical concept is used to derive pertinent cost dimensions and to solve traditional problems of cost allocation. A caution is that the investment approach is limited to decision facilitating cost accounting. Whether it may be possible to couple it with agency theory and its focus on decision influencing has not been explored and is an issue for further research.     

The interplay between cost accounting knowledge and presentation formats in cost-based decision-making

Most studies on cost-based decision-making examine the profit impact of cost reports that rely on different methods to allocate costs. In practice, firms’ cost reports often employ the same cost allocation method with subtle variations in the way that the cost data are presented. This paper examines experimentally the profit impact of a cost report’s presentation format in relation to a decision maker’s level of cost accounting knowledge. Using a customer profitability report prepared using activity-based costing and presented in either a tabular or a graphical format, participants analyze a complex pricing and resource allocation task that affects firm profitability. The results suggest a strong relation between presentation format and cost accounting knowledge. Specifically, decision makers with a low level of cost accounting knowledge attain higher profits when they use a graphical format in comparison to a tabular format. More surprisingly, graphs (versus tables) have an adverse effect on profits for users with a high level of cost knowledge. This result has broad implications: in order to facilitate the decisions of a variety of users of accounting data (e.g. managers, external investors, etc.), firms may need to adapt the presentation format of their accounting data to the level of accounting sophistication of the users.