We examine whether and to what extent managers are evaluated, in their relative performance contracts, on the basis of systematic performance. Focusing on relative total shareholder returns (rTSR), the predominant metric specified in these contracts and used by market participants to evaluate...

We develop a measurement-error framework for assessing the quality of relative-performance metrics designed to filter out the systematic component of performance, and analyze relative total shareholder return (rTSR)-the predominant metric market participants use to isolate managers'...

We examine the effect of mandated measurement and peer disclosure of new information on the persistence of performance improvements in a setting without performance incentives. Value of information (VOI) theory posits that information can improve the accuracy of posterior beliefs and thereby...

We exploit a unique feature of conference calls to study one type of interaction among executives — directly inviting colleagues to respond to analysts’ questions. We find that the frequency of initiating interaction is positively associated with an executive’s ability, but not associated...

We develop and validate new text-based measures of firms’ financial and non-financial value drivers. Using the Wayback Machine to access public US firms’ archived websites from 1995-2020, we scrape text from corporate homepages. We use Kaplan and Norton’s (1992) balanced scorecard, as well...

Gamified training is a novel management control system in which companies use gamification techniques to engage and motivate employees to learn. This study empirically examines the performance consequences of gamified training using data from a natural field experiment in a professional services...