Operational complexity in accounting research : measurement(s) and impacts

This project aims to find a better way to measure operational complexity for multi-segments firms, under an accounting perspective. Complexity is an important matter for accounting as many studies have documented how complex firms are harder to analyze for many stakeholders (financial analysts, auditors, regulators). Basically, operational complexity is currently proxied by the number of business segments in which a firm operates. This measure is incomplete because it does not account for the distance between segments – how they are related to each other – and their respective weight – what proportion of firm’s total sales they represent. Overall, this research project aims to find a better way to measure operational complexity in order to better the impact of complex firms on the main users of financial statements.

Faculty Supervisor:

Carl Brousseau

Student:

Partner:

Universidad Carlos III de Madrid

Discipline:

Sociology

Sector:

Education

University:

Université Laval

Program: