Research shows that penalty contracts can motivate more effort due to loss aversion. However, we do not have a clear understanding of how individuals are motivated by penalty contracts at different levels of target difficulty. Thus, we experimentally evaluate the effects of contract frame and...

Targets are crucial for organizational success and play an important role within the management control system for motivating subordinates and driving organizational performance. Setting targets is difficult and subjective, as managers seek to incorporate past information and expectations about...

This paper synthesizes existing experimental research in the area of investor perceptions and offers directions for future research. Investor-related experimental research has grown substantially, especially in the last decade, as it has made valuable contributions in establishing causal links,...

Target setting by superiors and their discretion in compensation decisions are important interrelated pieces in an organization's control system. Thus, we examine how these processes affect each other and superiors' decisions therein. We predict, and experimentally find, that superiors with ex...

This paper synthesizes existing experimental research in the area of investor perceptions and offers directions for future research. Investor-related experimental research has grown substantially, especially in the last decade, as it has made valuable contributions in establishing causal links,...