Sprinkle, Geoffrey B.; Williamson, Michael G.; Upton, … - In: Accounting, Organizations and Society 33 (2008) 4-5, pp. 436-452
We investigate how the budget levels embedded in budget-based contracts affect individual effort and risk-taking. We show that, from a wealth maximization perspective, a tradeoff exists between motivating effort and encouraging risk-taking. We illustrate an inverted-U relation between budget...