The impact of supervisory monitoring on high-end retail sales productivity

Banker, Rajiv D.; Lee, Seok-Young; Potter, Gordon; Srinivasan, Dhinu

doi:10.1007/s10479-009-0572-x

Cited by 17 publications

(8 citation statements)

References 32 publications

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“…This study is to model the production function relating the output of each accounting firm in a specific business year as a function of its inputs such as labor and capital, and contextual variables [12]. The single output for each accounting firm is measured as annual total revenue (TREV) in deflated Korean won.…”

Section: Output and Input Variablesmentioning

confidence: 99%

“…To reflect the different roles of labor input in the production function, two different types of human resources separately are considered: (i) the number of equity partners and non-partner certified public accountants (PROF) and (ii) the number of other employees who are not certified public accountants and are regarded as supporting personnel (SUPP). In addition, to capture another capital input factor, the major form of capital investment for each accounting firm that comprises tangible assets, intangible assets, investment assets, and other noncurrent assets is considered [12]. Although previous studies did not consider any capital input variable in the production of accounting firms due to the lack of data on capital input [1][2] [3], the book value of noncurrent assets (NCA) in deflated Korean won at the end of each business year is included.…”

Section: Output and Input Variablesmentioning

confidence: 99%

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An Exploratory Study of Factors Affecting Production Function in the Accounting Industry

Lee¹

2021

JARR

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Using a hand-collected unbalanced panel of data for Korean accounting firms from the year 1997 to 2018, this paper analyzes the production function relating the output of accounting firms as a function of two labor inputs and a capital input along with contextual variables that influence the relationship between the three inputs and the single output. The major results from the empirical analysis of this study are drawn as follows. First, this study finds that both the economies of scale and the economies of scope exist in the Korean accounting industry over the 1997-2018 period. Second, it is documented that the level of productivity improves continuously over the sample period. Third, it is shown that both the proportion of revenue from taxation services and the proportion of revenue from management advisory & other services are productive in generating total revenue, while the proportion of revenue from auditing services is not productive. In addition, taxation services are found to exhibit a higher productivity than management advisory & other services. Lastly, it is demonstrated that the contextual variables such as the degree of leveraging of partner time, the level of investment in employee training and education, the employee retention rate, the debt-to-equity, and the quick ratio are positively associated with accounting firm productivity.

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Section: Output and Input Variablesmentioning

confidence: 99%

Section: Output and Input Variablesmentioning

confidence: 99%

An Exploratory Study of Factors Affecting Production Function in the Accounting Industry

Lee¹

2021

JARR

Self Cite

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“…Banker et al. (2010) is an exception that tries to test the impact of antecedents such as supervisory monitoring, competition, and demographics on operational efficiency in high‐end retail stores within a single firm.…”

Section: Related Literature and Research Hypothesesmentioning

confidence: 99%

Examining the Link between Retailer Inventory Leanness and Operational Efficiency: Moderating Roles of Firm Size and Demand Uncertainty

Chuang

Oliva

Heim

2019

Production and Operations Management

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R etail inventories have been consistently dropping, relative to sales, since the 1990s. Whether these lean inventory developments translate to better retailer operational performance is still an open question. We empirically examine associations between inventory leanness and operational efficiency for a sample of public US retailers from 2000 to 2013. Via a stochastic frontier analysis that accounts for retailer heterogeneity and time parameters, we find support for the hypothesis that operational efficiency has an inverted U-shape relationship with inventory leanness, suggesting an optimal inventory leanness level beyond which retailer operational efficiency degrades. This relationship, however, is heavily moderated by firm size and demand uncertainty. The former reflects a retailer's abilities to exploit economies of scale and scope, whereas the latter reflects the unpredictability in a firm's operating environment. Our evidence suggests that when increasing inventory leanness, small retailers exhibit efficiency degradation, whereas larger retailers are likely to exhibit efficiency improvement, with diminishing returns. We also find that under high demand uncertainty, being less lean is associated with higher operational efficiency, regardless of firm size. The findings show that depending on firm size and demand uncertainty, retail managers should take special care when pursuing inventory leanness. As part of post hoc robustness tests, we assess how different retail categories vary in their operational efficiency scores and conduct interviews with retail executives who further ground our econometric investigation and point to more nuanced moderators for future studies. We conclude by discussing the implications of our industry model estimation for managers and researchers.

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“…For instance, Chang, Chang, Das, and Li (2004) evaluate operational efficiencies of hospitals using DEA, whereas Mensah and Li (1993) use DEA to estimate inefficiencies of budgeting systems in a not-for-profit setting. Banker, Lee, Potter, and Srinivasan (2010) utilize DEA to compute relative productivity of retail outlets, and then use the productivity scores to examine the impact of supervisory monitoring on retail sales productivity. Feroz, Kim, and Raab (2005) apply DEA in their analytical procedure to determine audit scope and to assess the preliminary risk level of a client.…”

Section: Introductionmentioning

confidence: 99%

Technical Inefficiency, Allocative Inefficiency, and Audit Pricing

Chang

Kao

Mashruwala

et al. 2017

Journal of Accounting, Auditing & Finance

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The critical global role of audit firms, combined with the scarcity of qualified staff and downward pressure on fees, has increased the importance of understanding efficiency in this industry. This article examines the technical and allocative inefficiencies of audit firm staffing using data from 165 audit engagements performed by a Big 4 international certified public accountant (CPA) firm. Prior research has shown that the technical inefficiency of audit engagements leads to lower billing realization rates on audit engagements. We complement and extend this research by examining whether there are inefficiencies in allocating staff for audit engagements in addition to technical inefficiency, and whether each of these inefficiencies leads to lower billing realization rates. We find that there are differences in both technical and allocative inefficiencies across audit engagements, and that both inefficiencies lead to lower billing realization rates after controlling for other characteristics that could affect the realization rates of the audit engagements.

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The impact of supervisory monitoring on high-end retail sales productivity

Cited by 17 publications

References 32 publications

An Exploratory Study of Factors Affecting Production Function in the Accounting Industry

An Exploratory Study of Factors Affecting Production Function in the Accounting Industry

Examining the Link between Retailer Inventory Leanness and Operational Efficiency: Moderating Roles of Firm Size and Demand Uncertainty

Technical Inefficiency, Allocative Inefficiency, and Audit Pricing

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