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 …

We investigate the role of Relative Performance Evaluation (RPE) theory in CEO pay and turnover using a product … affecting the firm and its peers) while evaluating CEO performance and that the extent of filtering increases with the number of …

) practice, the performance measured by the balanced scorecard (BSC) of small and medium-sized enterprises (SMEs) in Thailand …, and to test the influence of SEP practice on SMEs’ performance measured by BSC. Research Design & Methods: Using …, correlation matrix, and multiple regression. Findings: The study found that both SEP practice and performance measured by the BSC …

the announcement of a clawback adoption, as well as post-adoption stock and accounting performance, are significantly and …

payments for performance) is proposed. …

adjusting for any risk). In the cross-section of funds, there is a substantial disconnect between lifetime performance and … incentive fees earned. These poor outcomes stem from the asymmetry of the performance contract, investors' return …

them to either a prosocial or a commercial job. Our data suggest that the mission of a job itself has a performance …

individual performance measures in this case. Such questions and answers are part of the empirical study conducted for this paper. …

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. …