This study aims to present the conditions under which the manager should use effort standards in addition to performance evaluations for management control (MC). Due to COVID-19, remote work has recently been encouraged worldwide; however, it may reduce organizational members’ sense of belonging...

This study adopts behavioral contract theory through a mathematical model and clarifies the situation in which a fixed–salary contract is preferable to incentives–based one for the principal. Theoretically, the expected utility for the principal is higher under an incentives–based contract...

This study explores the effect of financial managers’ organizational identity (OI) on improving financial performance under fixed salary contracts and balanced budget restrictions in Japanese local governments (LGs). LGs enter compensation contracts based on fixed salaries with financial...

This study explores the effect of employee organizational identity on developing effective compensation contracts to improve organizational performance. We adopt the economic identity theory to mathematically model and test this model using data from a Japanese listed firm that uses an...

In this paper, we discuss the role of budgetary integrity, the role of monitoring execution of the budget and the role of incentive contracts based on the performance when the principal controls the administrator of an NRIO via analytical research based on agency theory. In addition, we examine...

Agency theory is a powerful tool but it is not all-encompassing due to the fact that it focuses mainly on pecuniary motivation. In this paper, therefore, by simply extending existing models that rely on agency theory, and by incorporating complex human factors into them, we examine the role of...