Debt pressure and interactive use of control systems: effects on cost of debt

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Show simple item record García Osma, Beatriz Gomez Conde, Jacobo Heras Cristobal, Elena de las 2022-06-30T15:57:06Z 2022-06-30T15:57:06Z 2018-09-01
dc.identifier.bibliographicCitation Garcia Osma, B., Gomez-Conde, J., & de las Heras, E. (2018). Debt pressure and interactive use of control systems: effects on cost of debt. Management Accounting Research, 40, pp. 27-46.
dc.identifier.issn 1044-5005
dc.description.abstract We study if debt pressure drives the use of interactive management accounting and control systems (MACS) and its consequences. We build on Simons (1990) and argue that financing pressures can threaten strategic investment. To alleviate debt pressures and reduce information asymmetries with lenders, managers are predicted to increase the interactive use of MACS. However, because individual MACS have different features, not all interactive use of individual MACS equally serves to assuage debt pressures. We predict that firms facing high debt pressure interactively use traditional MACS and that when individual MACS use befits the level of debt pressure, firms benefit by experiencing future decreases in their cost of debt. Our findings confirm these predictions. We contribute to the literature by showing that pressures from external stakeholders influence interactive use. We also suggest a new relevant firm outcome affected by MACS use: the future cost of debt. Finally, in additional analyses, we show that concerns over innovation may lead managers to choose apparently non-optimal MACS for interactive use, consistent with managers often juggling conflicting pressures.
dc.description.sponsorship We acknowledge financial assistance from the Spanish Ministry of Education and Science (ECO2013-48328, ECO2016-77579), CAM (H2015/HUM-3353), FEDER (UNC315-EE-3636), the Catedra UAM- Auditores Madrid and 6th ed. AECA Research Grants (2015-2016).
dc.language.iso eng
dc.publisher Elsevier
dc.rights © Elsevier
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.subject.other Debt pressure
dc.subject.other Interactive use
dc.subject.other Management accounting and control systems
dc.subject.other Cost of debt
dc.subject.other Innovation
dc.subject.other Levers of control
dc.title Debt pressure and interactive use of control systems: effects on cost of debt
dc.type article
dc.subject.eciencia Economía
dc.subject.eciencia Empresa
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2013-48328-C3-2-P
dc.relation.projectID Gobierno de España. UNC315-EE-3636
dc.relation.projectID Gobierno de España. ECO2016-77579-C3-3-P
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 3544
dc.identifier.publicationlastpage 3558
dc.identifier.publicationtitle Management Accounting Research
dc.identifier.publicationvolume 42
dc.identifier.uxxi AR/0000022147
dc.contributor.funder Ministerio de Economía y Competitividad (España)
dc.affiliation.dpto UC3M. Departamento de Economía de la Empresa
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