The Effects of State Budget Policy on Research University Indirect Cost Recovery Rates and Management Accounting

40 Pages Posted: 19 May 1999

See all articles by Janice Ammons

Janice Ammons

Quinnipiac University

Steven Salterio

Queen's University - Smith School of Business

Date Written: April 9, 1999

Abstract

This research studies the relationship between state government budgetary policy and research universities' incentives. In particular, this paper examines the effects of state government decisions that effectively tax universities by controlling universities? receipts of indirect cost recoveries earned on federally sponsored research. The effects of this policy decision on universities are examined at both a macro level (the overall rate of indirect cost recoveries) and at a micro level (the types of management accounting systems employed to support rate negotiations). Employing both archival and survey data, the results of this research demonstrate that universities subject to state taxation of indirect cost recoveries tend to have lower indirect cost rates and use less elaborate management accounting systems to support rate negotiation efforts.

JEL Classification: M40, M46

Suggested Citation

Ammons, Janice and Salterio, Steven E., The Effects of State Budget Policy on Research University Indirect Cost Recovery Rates and Management Accounting (April 9, 1999). Available at SSRN: https://ssrn.com/abstract=161908 or http://dx.doi.org/10.2139/ssrn.161908

Janice Ammons (Contact Author)

Quinnipiac University ( email )

275 Mt. Carmel Avenue
School of Business
Hamden, CT 06518
United States
302-288-5251 ext 8310 (Phone)

Steven E. Salterio

Queen's University - Smith School of Business ( email )

Kingston, Ontario K7L 3N6
Canada
613-533-6926 (Phone)

HOME PAGE: http://smith.queensu.ca/faculty_and_research/faculty_list/salterio-steven.php

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