Free riding, empire building, and cost management prior to and post municipal enterprise mergers in Japan

References

• Amihud, Y., and B. Lev. 1981. “Risk Reduction as a Managerial Motive for Conglomerate Mergers.” The Bell Journal of Economics 12 (2): 605–617. doi:10.2307/3003575.
   Google Scholar
• Anderson, M. C., R. D. Banker, and S. Janakiraman. 2003. “Are Selling, General, And　administrative Costs “Sticky”?” Journal of Accounting Research 41 (1): 47–63. doi:10.1111/1475-679X.00095.
   Web of Science ®Google Scholar
• Banker, R. D., and D. Byzalov. 2014. “Asymmetric Cost Behavior.” Journal of Man-agement Accounting Research 26 (2): 43–79. doi:10.2308/jmar-50846.
   Google Scholar
• Banker, R. D., D. Byzalov, and L. T. Chen. 2013. “Employment Protection Legislation, Adjustment Costs and Cross-country Differences in Cost Behavior.” Journal of Ac-counting and Economics 55 (1): 111–127. doi:10.1016/j.jacceco.2012.08.003.
   Web of Science ®Google Scholar
• Bertrand, M., and S. Mullainathan. 2003. “Enjoying the Quiet Life? Corporate Governance and Managerial Preferences.” Journal of Political Economy 111 (5): 1043–1075. doi:10.1086/376950.
   Web of Science ®Google Scholar
• Blom-Hansen, J. 2010. “Municipal Amalgamations and Common Pool Problems: The Danish Local Government Reform in 2007.” Scandinavian Political Studies 33 (1): 51–73. doi:10.1111/j.1467-9477.2009.00239.x.
   Web of Science ®Google Scholar
• Bradbury, M. E., and T. Scott. 2018. “Do Managers Forecast Asymmetric Cost Behaviour?” Australian Journal of Management 43 (4): 538–554. doi:10.1177/0312896218773136.
   Web of Science ®Google Scholar
• Brüggen, A., and J. O. Zehnder. 2014. “SG&A Cost Stickiness and Equity-based Execu-tive Compensation: Does Empire Building Matter?” Journal of Management Control 25 (3–4): 169–192. doi:10.1007/s00187-014-0195-5.
   Google Scholar
• Chang, Y. 2009. “Empire Building and Fiscal Illusion? An Empirical Study of Government Official Behaviors in Takings.” Journal of Empirical Legal Studies 6: 541–584. doi:10.1111/j.1740-1461.2009.01153.x.
   Web of Science ®Google Scholar
• Chen, C. X., H. Lu, and T. Sougiannis. 2012. “The Agency Problem, Corporate Govern-ance, and the Asymmetrical Behavior of Selling, General, and Administrative Costs.” Contemporary Accounting Research 29 (1): 252–282. doi:10.1111/j.1911-3846.2011.01094.x.
   Web of Science ®Google Scholar
• Cohen, S., S. Karatzimas, and V. C. Naoum. 2017. “The Sticky Cost Phenomenon at the Local Government Level: Empirical Evidence from Greece.” Journal of Applied Accounting Research 18 (4): 445–463. doi:10.1108/JAAR-03-2015-0019.
   Web of Science ®Google Scholar
• Copeland, T., T. Koller, and J. Murrin. 1994. Valuation: Measuring and Managing the Value of the Company. New Jersey: John Wiley& Sons.
   Google Scholar
• Damodaran, A. 2006. Applied Corporate Finance. 2nd ed. New Jersey: John Wiley& Sons.
   Google Scholar
• Deis, D. R., and G. A. Giroux. 1992. “Determinants of Audit Quality in the Public Sector.” The Accounting Review 67 (3): 462–479.
   Web of Science ®Google Scholar
• Dierynck, B., W. R. Landsman, and A. Renders. 2012. “Do Managerial Incentives Drive Cost Behavior? Evidence about the Role of the Zero Earnings Benchmark for Labor Cost Behavior in Private Belgian Firms.” The Accounting Review 87 (4): 1219–1246. doi:10.2308/accr-50153.
   Web of Science ®Google Scholar
• Guenther, T. W., A. Riehl, and R. Rößler. 2014. “Cost Stickiness State of the Art of Re-search and Implications.” Journal of Management Control 24 (4): 301–318. doi:10.1007/s00187-013-0176-0.
   Google Scholar
• Hansen, S. W. 2014. “Common Pool Size and Project Size: An Empirical Test on Expendi-tures Using Danish Municipal Mergers.” Public Choice 159 (1–2): 3–21. doi:10.1007/s11127-012-0009-y.
   Web of Science ®Google Scholar
• Hinnerich, B. T. 2009. “Do Merging Local Governments Free-ride on Their Counterparts When Facing Boundary Reform?” Journal of Public Economics 93: 721–728. doi:10.1016/j.jpubeco.2009.01.003.
   Web of Science ®Google Scholar
• Holzer, M., J. Fry, E. Charbonneau, G. Van Ryzin, T. Wang, and E. Burnash. 2009. “Literature Review and Analysis Related to Optimal Municipal Size and Efficiency.” Report prepared for the Local Unit Alignment, Reorganization, and Consolidation Commission.
   Google Scholar
• Holzhacker, M., R. Krishnan, and M. D. Mahlendorf. 2015. “The Impact of Changes in Regulation on Cost Behavior.” Contemporary Accounting Research 32 (2): 534–566. doi:10.1111/1911-3846.12082.
   Web of Science ®Google Scholar
• Jacobsen, D. I. 2006. “Public Sector Growth: Comparing Politicians’ and Administra-tors’ Spending Preferences.” Public Administration 84 (1): 185–204. doi:10.1111/j.0033-3298.2006.00499.x.
   Web of Science ®Google Scholar
• Jensen, M. C. 1986. “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers.” American Economic Review 76 (3): 323–329.
   Google Scholar
• Jensen, M. C., and W. Meckling. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs, and Capital Structure.” Journal of Financial Economics 3 (4): 305–360. doi:10.1016/0304-405X(76)90026-X.
   Web of Science ®Google Scholar
• Jordahl, H., and C.-Y. Liang. 2010. “Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics.” Public Choice 143: 157–172. doi:10.1007/s11127-009-9495-y.
   Web of Science ®Google Scholar
• Kama, I., and D. Weiss. 2013. “Do Earnings Targets and Managerial Incentives Affect Sticky Costs?” Journal of Accounting Research 51 (1): 201–224. doi:10.1111/j.1475-679X.2012.00471.x.
   Web of Science ®Google Scholar
• Kinugasa, T. 2010. “Economics of Government Corporation.” Bulletin of Otemon Gakuin University. Osaka; Otemon Gakuin economic association. https://www.i-repository.net/il/meta_pub/G0000145OTEMON_102100303
   Google Scholar
• Kristensen, O. P. 1980. “The Logic of Political Bureaucratic Decision-making as a Cause of Governmental Growth: Or Why Expansion of Public Programs Is a “Private Good” and Their Restriction Is a “Public Good”.” European Journal of Political Research 8: 249–264. doi:10.1111/j.1475-6765.1980.tb00573.x.
   Web of Science ®Google Scholar
• Lee, W.-J., J. Pittman, and W. Saffar. 2020. “Political Uncertainty and Cost Stickiness: Evidence from National Elections around the World.” Contemporary Accounting Research. 37(2), 1107–1139. https://onlinelibrary.wiley.com/doi/abs/10.1111/1911-3846.12547
   Web of Science ®Google Scholar
• McGuire, T. G. 1981. “Budget-maximizing Governmental Agencies: An Empirical Test.” Public Choice 36 (2): 313–322. doi:10.1007/BF00123787.
   Web of Science ®Google Scholar
• Ministry of Internal Affairs and Communications. 1995–2013. Basic Resident Register Annual Population Report. Japan: Population Census Division, Statistics Bureau, Ministry of Internal Affairs and Communications.
   Google Scholar
• Ministry of Internal Affairs and Communications. 1995–2013. Municipal Enterprise Yearbook, 43–61. Japan: Local Public Enterprise Division, Local Public Finance Bureau, Ministry of Internal Affairs and Communications.
   Google Scholar
• Ministry of Internal Affairs and Communications. 2008. Evaluation, Verification and Analysis of ‘The Municipal Merger of the Heisei Area. Japan: Municipal Merger Promotion Division, Local Administration Bureau, Ministry of Internal Affairs and Communications.
   Google Scholar
• Morck, R., A. Shleifer, and R. W. Vishny. 1990. “Do Managerial Objectives Drive Bad Acquisitions?” Journal of Finance 45 (1): 31–48. doi:10.1111/j.1540-6261.1990.tb05079.x.
   Web of Science ®Google Scholar
• Nakazawa, K. 2016. “Amalgamation, Free-rider Behavior, and Regulation.” International Tax and Public Finance 23 (5): 812–833. doi:10.1007/s10797-015-9381-0.
   Web of Science ®Google Scholar
• Niskanen, W. A. 1968. “Nonmarket Decision Making: The Peculiar Economics of Bureaucracy.” The American Economic Review 58 (2): 293–305.
   Web of Science ®Google Scholar
• Noreen, E. 1991. “Conditions under Which Activity-based Costs Provide Relevant Costs.” Journal of Management Accounting Research 3: 159–168.
   Google Scholar
• Organization for Economic Co-operation and Development. 2008. “Budgeting in Greece.” OECD Journal of Budgeting 3: 1–50.
   Google Scholar
• Pesch, U. 2006. The Predicaments of Publicness: An Inquiry into the Conceptual Ambiguity of Public Administration. Utrecht: Eburon Academic Publishers.
   Google Scholar
• Reimer, K. 2019. Asymmetric Cost Behavior. Wiesbaden: Springer Fachmedien.
   Google Scholar
• Richardson, S. 2006. “Over-Investment of Free Cash Flow.” Review of Accounting Studies 11: 159–189. doi:10.1007/s11142-006-9012-1.
   Web of Science ®Google Scholar
• Saarimaa, T., and J. Tukiainen. 2015. “Common Pool Problems in Voluntary Municipal Mergers.” European Journal of Political Economy 38: 140–152. doi:10.1016/j.ejpoleco.2015.02.006.
   Web of Science ®Google Scholar
• Saussier, S., and M. Klien. 2014. “Local Public Enterprises: A Taxonomy.” Working paper. La Chaire EPPP. Sorbonne Business School.
   Google Scholar
• Shleifer, A., and R. Vishny. 1989. “Management Entrenchment: The Case of Manager-specific Investments.” Journal of Financial Economics 25 (1): 123–139. doi:10.1016/0304-405X(89)90099-8.
   Web of Science ®Google Scholar
• Shust, E., and D. Weiss. 2014. “Asymmetric Cost Behavior-Sticky Costs Expenses Ver-sus Cash Flows.” Journal of Management Accounting Research 26 (2): 81–90. doi:10.2308/jmar-10406.
   Google Scholar
• Tavares, F. A. 2018. “Municipal Amalgamations and Their Effects: A Literature Review.” Regional Studies on Development 22 (1): 5–15.
   Google Scholar
• Tullock, G. 1959. “Problems of Majority Voting.” Journal of Political Economy 67: 571–579. doi:10.1086/258244.
   Web of Science ®Google Scholar
• United Nations. 2008. Public Enterprises: Unresolved Challenges and New Opportunities. Division for Public Administration and Development Management, Department of Economic and Social Affairs of the United Nations: New York.
   Google Scholar
• Weingast, B., K. Shepsle, and C. Johnsen. 1981. “The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics.” Journal of Political Economy 89: 642–664. doi:10.1086/260997.
   Web of Science ®Google Scholar
• Weiss, D. 2010. “Cost Behavior and Analysts’ Earnings Forecasts.” The Accounting Re-view 85: 1441–1474. doi:10.2308/accr.2010.85.4.1441.
   Web of Science ®Google Scholar
• Williamson, O. E. 1964. The Economics of Discretionary Behavior: Managerial Objectives in a Theory of the Firm. Englewood Cliffs: Prentice-Hall.
   Google Scholar