In participative budgeting settings, less informed superiors elicit information from privately informed subordinates. In these situations, subordinates' honesty preferences should substantially enhance the efficiency of the budgeting process. In fact, recent research on budgeting suggests that...

This study examines optimal task assignment and performance measurement under moral hazard in a two state setting where two agents are risk neutral and have limited liability. Both productive and incentive efficiency are affected by task assignment. The principal may assign to each agent either...

By its very nature, management control research can be complex and difficult to understand, and hence challenging to introduce into the classroom. Nevertheless, it is important for accounting instruction to retain a connection between teaching and research. This note provides guidance on how...