We examine the association between managers' expertise and their discretionary bonus decisions in a hospital setting. We hypothesize that high-expertise managers make decisions that encourage cooperation among their subordinates. However, low-expertise managers cannot do so because their lower...

We study theoretically and empirically the relation between altruism preferences and incentive contract design. Theoretically, we extend Fischer and Huddart (2008) to investigate how social norms reinforce altruism preferences, thus affecting the optimal contract design related to incentive...

Many decisions are made based on persuasion. In the persuasion process, self-interested agents produce information to convince an evaluator to approve their proposals. Whether an evaluator will discount the agents' suggestions and reject their proposal is neither clear nor obvious. We highlight...

Accounting performance measures are often argued to lead to short-sighted behavior by managers facing intertemporal decisions. We assess the association between different types of performance measures and the time horizon of business unit managers who have profit responsibility. Our results,...

Little attention has been given to the role of leadership characteristics in the organization design literature despite significant evidence of its importance in explaining firm behavior. This study develops and tests a model to assess the effects of leadership style on three control choices...