Due to agency problems, firms use management control systems to motivate employees to act in the firms' interest. This process includes motivating employees to increase effort as well as aligning risk preferences. Whereas Bonner and Sprinkle (2002) review and discuss research findings regarding...

Organizations often introduce temporary incentive programs with a view of establishing long lasting behaviors. Monetary payoffs are awarded upon achievement of team goals, which measure the success of the initiative. In this study I explore whether and how organizational behavior modifications...

We consider a principal-multi agent model that features a three-tier hierarchy, defined as a setting where the principal contracts with an agent-manager and delegates to the manager some authority to contract with other agents. A key highlight is that incentive compensation, performance...

We study three elements of management control: incentive compensation, performance monitoring, and delegation of authority to managers to contract with lower-level employees. Using a principal-agent model, we highlight important direct and indirect interactions between and among these endogenous...

This study explores the effect of employee organizational identity on developing effective compensation contracts to improve organizational performance. We adopt the economic identity theory to mathematically model and test this model using data from a Japanese listed firm that uses an...

Ein typisches Ergebnis einfacher Prinzipal-Agent-Modelle ist, dass die Arbeitsanstrengung des Agenten lediglich vom leistungsabhängigen Teil der Vergütung getrieben wird. In dieser Arbeit wird gezeigt, dass dies nicht notwendigerweise gilt, wenn Agenten referenzpunktabhängige Präferenzen und...

Firms often use stock-based incentives (SBIs) to attract and motivate talented employees. Thus, the question of how and on what basis to determine SBIs is an important issue for a firm. In this paper, we study determinants of SBIs based on data of Korean listed firms in 2002-2018. As a measure...