Accounting Measurement of Transaction Costs and Its Effect on Corporate Performance:Theory and Evidence

Transaction costs are the core concept of new institutional economics.There are,however,a lot of argument over the issue: whether the transaction costs can be measured,or how to measure the transaction costs.The measurement of transaction costs makes transaction costs into a kind of analytical tool rather than an endogenous variable,thus limiting the development of new institutional economics.Companies can indirectly measure the actual business transaction costs by making use of accounting information and cost accounting system,and also can directly measure it by improving the day-to-day accounting treatment.The results of positive study on how transaction costs affect corporate performance shows that the operating transaction costs have a significant negative impact on corporate performance,while the allocating transaction costs have a positive correlation with corporate performance.