Accounting for Capacity Investments
Stefan Reichelstein (University of Mannheim)
Anna Rohlfing-Bastian (Goethe University Frankfurt)
Vienna, October 2-3, 2020
In order to supply goods and services to their customers, most firms need to make upfront investments in productive capacity. These investments can occur once or have to be made on an ongoing basis. They comprise both tangible and intangible components.
Accounting for the firm’s capital stock is essential for both planning and management control purposes. Good accounting provides guidance for management to make value-maximizing investment decisions and to allocate existing capacity efficiently.
The primary objective of the course is to introduce graduate students and freshly minted post-doctoral fellows to current research related to the accounting for capacity investments, and to identify promising avenues for future research. The course readings feature mostly recent theoretical and empirical papers.