The purpose of this article is to examine whether R&D expenditure is biased downwards because of self-serving behavior of highly incentivized managers. This offers an insight into the general relationship between incentives and opportunism. Using instrumental variables and panel data methods for...

In this paper, I examine the complementarity of performance measurement, performance pay for production workers, and delegation of decisions to production workers in German manufacturing. I argue and find that combining the three management practices yields higher financial performance than the...