In practice, managers and employees often enter into risky, uncertain contracts. Prior works shows that managers use ex post discretion to reduce the effect of uncontrollable “bad luck” on employees' performance-based compensation, but do not use ex post discretion to reduce the effect of...

This paper outlines strengths and limitations of three approaches to providing process evidence in experimental accounting research: moderation, mediation, and multiple experiments and methods. We argue that the research question determines the importance of process evidence in experimental...