The performance appraisal (PA) is one of the performance management tools that is widely used to measure the productivity of academic employees in different contexts. Therefore, this paper has two main objectives. Firstly, it critically reviews the extant literature on performance management,...

Little is known about why CEOs voluntarily purchase shares of their firm other than because they expect to directly profit from doing so. However, since CEOs are risk-averse, highly un-diversified, and face litigation costs from trading on favorable private information, direct profits are...

We identify differences in performance measurement precision between jobs within the same firm as an important, yet previously unidentified, source of pay dispersion. Downes and Choi (2014) conclude in their review of prior research that pay dispersion will not cause employees to withhold effort...

We analyze optimal labor contracts when workers are inequity averse towards the employer. Welfare is maximized for an equal sharing rule of surplus between the worker and the firm. That is, profit sharing is optimal even if effort is contractible. If the firm can make a take-it-or leave-it...

China's stock market has gone through major structural changes since its inception in early 1990s. In this survey article, we review the empirical literature that document these important structural changes and published in 15 leading accounting and finance journals from 1998 to 2013. In...

We introduce a general single-agent single-period incentive model that is applicable to a broad-spectrum of situations. Agent's hidden actions contribute to the firm's profits, which is not measurable in general. However, there are measurable outcomes, which stochastically depend on the agent's...

In a field experiment, we test the impact of performance-based incentives for community college instructors. We estimate that instructor incentives improve student performance on objective course exams by 0.2 standard deviations, increase course grades by 0.1 standard deviations, and reduce...

This paper presents the results from a field experiment that examines the effects of nonfinancial performance feedback on the behavior of professionals working for an insurance repair company. We vary the frequency (weekly and monthly) and the level of detail of the feedback that the 800...

Corporate culture is increasingly important for retention and employee motivation. First, using a new survey tool with PayScale.com, I show that culture is strongly correlated with employee engagement and both firm productivity and occupational skills. Moreover, a value-weighted portfolio of...