This paper investigates reporting honesty when managers have monetary incentives to overstate their performance. We argue that managers who report about their performance will take into account how their report affects their peers (i.e., other managers at the same hierarchical level). This...

A variety of analogical literature is reviewed to ascertain oscillations in the collected works to determine a symphonic solution that is emancipatory of all incentives to conduct unethical manipulations of financial disclosures. The etymological question is how to structure an incentive plan...

This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual "surprise" bonus payment. The other is a more structured...

This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual ''surprise'' bonus payment. The other is a more...

The term ‘incentive' (from Latin incentivum ‘something that sets the tune') is a tangible and/or intangible reward that motivates people and creates favorable environmental conditions to maximize performance to achieve specific goals in organization or competition and/or society

The escalation of commitment process involves a decision-maker continuing commitment to an investment after receiving negative information. This study develops a principal-agent model to explore how escalation decisions are linked with departures of CEOs from the position. With asymmetric...

This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual surprise bonus payment. The other is a more structured...

Motivation is an important tool which can have a significant impact to improve the performance of employees in any organization and in the current competitive world, employees' commitment is crucial in achieving the organizational goals. The current research is aimed at examining the role played...

Distorted performance measures in compensation contracts elicit suboptimal behavioral responses that may even prove to be dysfunctional (gaming). This paper applies the empirical test developed by Courty and Marschke (2008) to detect whether the widely used class of Residual Income based...

In many organizational contexts, managers might have self-serving incentives whereby giving high evaluations to employees comes at the expense of their own payoff. In this study, I examine the impact of managers’ self-serving incentives on the collection and use of information for the purpose...