Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to … whether the widely used class of Residual Income based performance measures - such as Economic Value Added (EVA) - is … economic circumstances and the self-selection of firms using EVA. Our findings indicate that EVA is a distorted performance …

Baker (2002) has demonstrated theoretically that the quality of performance measures used in compensation contracts … noise and distortion of a performance measure can be measured. Courty and Marschke (2007) have recently developed an elegant … empirical test to detect distortion, based on the degradation of a performance measure subsequent to increasing its weight in …

performance. Measured performance equals actual performance plus noise. We compare a stable environment where the noise is small … expectancy theory; noisier performance measures do not lower work motivation. …

performance. In particular, he can provide a legitimate excuse, that is, evidence that a poor result is only due to factors … principal to prefer a policy of adjusting ex post the performance measure for the information provided by the agent to a policy …

The purpose of this study is twofold: first, to examine the disclosure level of operational performance and second; to …, the study uses disclosure index to determine the disclosure level of operational performance and presents the results … using tables. The research reveals that there is high disclosure level of operational performance information at DSE. The …

This paper examines the performance of 358 European diversified equity mutual funds controlling for gender differences …. Fund performance is evaluated against funds' designated market indices and representative style portfolios. Consistently … with previous studies, no significant differences in performance and risk are found between female and male managed funds …

informed about their piece rate realization, they adapt their performance. One third of subjects nevertheless forego this …

in Scotland. New measures of flexibility and turbulence are used to explain the performance of mature small firms. These … depend on our unique body of evidence from interviews with owner managers. Performance is measured using a Likert scale over … performance. This is done in two forms. The first involves generalised least squares estimation (with heteroskedastic adjustment …

When verifiable performance measures are imperfect, organizations often resort to subjective performance pay. This may … towards specific tasks. We show that subjective performance pay based on evaluation by a biased supervisor has the same … distorting effect on the agent's effort allocation as incentive pay based on an incongruent performance measure. If the principal …