This study seeks to advance understanding of how transformational leadership by top executives can affect their companies' innovativeness. A holistic model is proposed that includes both direct effects from transformational leadership, and indirect effects mediated by characteristics of the...

The study investigates the appropriateness of using publication of an article in a top (specifically, top three) accounting journal as a proxy for its quality, as reflected by its impact on others' research. This investigation is motivated by an apparent increase in pressures to publish in top...

The widely accepted business wisdom tells us that maintaining a long-term relationship with customers is more profitable than acquiring new customers, but very limited empirical evidence supports this viewpoint. The inconsistent findings in prior research suggest that some factors may influence...

We investigate whether referral-based hiring exacerbates or mitigates control problems. Incentive contracts can be used to attract employees with certain traits. However, whether the outcomes are positive for the firm or not depends on the quality of incentive contracts. Our research setting...

This study reports that changes in compensation from performance-sensitive (commission-based) to less performance-sensitive (base salary plus commission) schemes hurt employee performance but do not impair the company's. We analyzed performance data for 4,392 employees and 87 branches of a major...

The agent theory is of central importance to compensation contract, which argues that incentive intensity should be negatively associated with risk. Yet, previous studies have reported mixed findings on this relationship. This study empirically examines this relationship by utilizing data...

Using car dealership data, we examine the relevance of forward-looking (FL) and contemporaneous (CO) measures for pay-for-performance incentives (bonus, annual raise, promotions) for long-horizon employees. Economic models suggest that while contracts with FL performance measures mitigates the...

Many organizations implement the Balanced Scorecard (BSC) in their headquarters and strategic business units (SBUs), but not in the shared service units (SSUs). Kaplan and Norton (2006) indicate that it is important to implement the BSC on SSUs in order to provide administrators with information...

Agency theory argues that pay-performance sensitivity to agents should be negatively associated with risk; however, some empirical evidence suggests the opposite. While analytical studies do not reach consensus on the relation between competition and pay-performance sensitivity, empirical...

Based on the balanced scorecard (BSC), a strategic alignment among different departments and external parties is the key to improve organizational performance. According to the “social exchange theory”, an organization exploits opportunities to align with external partners, such as...