Understanding an organization's incentive design requires that researchers collectively examine all forms of incentive instruments, namely, bonus, merit raise, and promotion, since these are common components of an incentive structure. Prior research on the weighting of performance measures...

We investigate whether referral-based hiring exacerbates or mitigates control problems. Incentive contracts can be used to attract employees with certain traits. However, whether the outcomes are positive for the firm or not depends on the quality of incentive contracts. Our research setting...

Using car dealership data, we examine the relevance of forward-looking (FL) and contemporaneous (CO) measures for pay-for-performance incentives (bonus, annual raise, promotions) for long-horizon employees. Economic models suggest that while contracts with FL performance measures mitigates the...