Anomalous Operating Performance During Economic Slowdowns

IF 1.4 Q3 BUSINESS, FINANCE

Journal of Management Accounting Research Pub Date : 2020-06-01 DOI:10.2308/jmar-52547

R. Banker, Shunlan Fang, Mihir N. Mehta

引用次数: 6

Abstract

Operating performance is an important and widely used measure for evaluating firms. This paper documents that, contrary to the common belief, firms experiencing sales declines during economic slowdowns exhibit higher operating margins than firms experiencing sales declines during normal periods. This anomalous behavior results from (1) a decrease in costs of goods sold overall during economic slowdowns and (2) an additional reduction in SG&A costs other than expenditures that could affect the competitiveness (i.e., R&D and advertising) of sales-down firms. The relatively higher operating performance reported by sales-down firms during economic slowdowns is associated with improvements in operational efficiency and cannot be explained as earnings management or simply as a response to financial distress or a large sales decline. Our findings provide important insights into how macroeconomic conditions affect firms' operating performance in a predictable way.

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经济放缓期间的异常经营业绩

经营绩效是评价企业的一项重要且广泛使用的指标。本文证明，与普遍看法相反，在经济放缓期间经历销售下降的公司比在正常时期经历销售下降的公司表现出更高的营业利润率。这种反常行为的原因是:(1)经济放缓期间销售的商品成本总体下降;(2)除了可能影响销售下降公司的竞争力(即研发和广告)的支出外，SG&A成本的额外减少。在经济放缓期间，销售下降的公司报告的相对较高的经营业绩与经营效率的提高有关，不能解释为盈余管理，也不能简单地解释为对财务困境或销售大幅下降的反应。我们的研究结果为宏观经济条件如何以可预测的方式影响公司的经营绩效提供了重要的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Management Accounting Research BUSINESS, FINANCE-

CiteScore

2.90

自引率

5.90%

发文量

期刊介绍： The mission of the Journal of Management Accounting Research (JMAR) is to advance the theory and practice of management accounting through publication of high-quality applied and theoretical research, using any well-executed research method. JMAR serves the global community of scholars and practitioners whose work impacts or is informed by the role that accounting information plays in decision-making and performance measurement within organizations. Settings may include profit and not-for profit organizations, service, retail and manufacturing organizations and domestic, foreign, and multinational firms. JMAR furthermore seeks to advance an understanding of management accounting in its broader context, such as issues related to the interface between internal and external reporting or taxation. New theories, topical areas, and research methods, as well as original research with novel implications to improve practice and disseminate the best managerial accounting practices are encouraged.