Capital Investments

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Capital investments is an issue of fundamental concern to economists and managerial accountants.  In essence, capital investment decisions are resource allocation decisions.  Managerial accountants are especially concerned with the way capital investment (often called capital budgeting) decisions are made and the role of accounting information in making such decisions.  In addition, managerial accountants are concerned with the way to measure the performance of such decisions.  Several papers addressing these, and related, issues are listed below.

Gordon, L. A., M. P. Loeb, T. Sohail, C-Y Tseng, and L. Zhou, “Cybersecurity, Capital Allocations and Management Control Systems,” European Accounting Review, Vol. 17, issue 2, pp. 215-241.

Gordon, L.A., M.P. Loeb, and C. Tseng, "Capital Budgeting and Informational Impediments: A Managerial Accounting Perspective.” Chapter in Contemporary Issues in Management Accounting, Oxford University Press, A. Bhimini (ed.), 2006, pp. 146-165.

Gordon, L. A. and M. P. Loeb, “Process For Deciding on Information Security Expenditures: Empirical Evidence,” Communications of the ACM (January 2006), pp. 121-125.

Bodin, L., L. A. Gordon and M. P. Loeb, “Evaluating Information Security Investments Using the Analytic Hierarchy Process,” Communications of the ACM (February 2005), pp. 78-83.

 Gordon, L. A. and M. P. Loeb, "The Economics of Information Security Investment," ACM Transactions on Information and System Security, (November 2002), pp. 438-457.  Reprinted in Economics of Information Security, 2004, Springer, Camp and Lewis, eds.)

Gordon, L. A. and R. J. Iyengar, “Return on Investment and Corporate Capital Expenditures: Empirical Evidence,” Journal of Accounting and Public Policy, Vol. 15, No. 4 (Winter 1996), pp. 305-325.

Gordon, L. A., M. P. Loeb and M. Myers, “A Note on Postauditing and Firm Performance,” Managerial and Decision Economics, Vol. 15 (1994), pp. 177-181.

Fettus, S. and L. A. Gordon, “Federal Capital Investment Information: An Assessment of Public Law 98-501,” Journal of Accounting and Public Policy, Vol. 13, No. 4 (Winter 1994), pp. 283-303.

Gordon, L. A. and K. Smith, “Postauditing Capital Expenditures and Firm Performance: The Role of Asymmetric Information,” Accounting, Organizations and Society, Vol. 17, No. 8 (1992), pp. 741-757.

Myers, M., L. A. Gordon and M. Hamer, “Postauditing Capital Assets and Firm performance: An Empirical Investigation,” Managerial and Decision Economics, Vol. 12 (1991), pp. 317-327.

Gordon, L. A., M. Loeb, and A. Stark, “Capital Budgeting and the Value of Information,” Management Accounting Research, Vol. 1., No. 1 (1990), pp. 21-35.

Gordon, L. A., M. Kleiner and R. Natarajan, “Federal Capital Expenditures and Budget Deficits: Gross National Product and Labor Implications,” Journal of Accounting and Public Policy, Vol. 5, No. 4 (1986), pp. 217-232.

Haka, S., L. A. Gordon and G. E. Pinches, “Sophisticated Capital Budgeting Selection Techniques and Firm Performance,” The Accounting Review, (October, 1985), pp. 651-669. Reprinted in Emmanuel, Otley and Merchant’s Readings in Accounting for Management Control (Chapman& Hall), 1992

Gordon, L. A., D. Larcker and F. D. Tuggle, “Informational Impediments to the Use of Sophisticated Capital Budgeting Models,” Omega, Vol. 7, No. 1 (1979), pp. 67-74.

Gordon, L.A. and G. Pinches, Improving Capital Budgeting: A Decision Support System Approach (Addison-Wesley Publishing Co.: Massachusetts, 1984).



   Dr. Lawrence A. Gordon giving           presentation at research seminar at the University of Toronto (May 1993)       

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