This study examines the effects of risk preference and loss aversion on individual responses to differently framed, yet economically equivalent, incentive contracts. We extend prior research by examining contracts with combinations of bonus, penalty, and clawback incentives. Contracts framed as...

This study examines behavior in a budgeting setting where a superior has private information regarding the accuracy of the firm's cost system, which she may misrepresent in an effort to elicit more truthful budget proposals from subordinates. We explore two features of this budgeting setting....

In most organizations, budgets are important mechanisms for planning and control and for motivating subordinate performance. Accordingly, budgeting is one of the most extensively studied topics in managerial accounting. We analyze previous research by first classifying studies according to their...