This article aims to discuss the use of common neurophysiological tools, such as psychophysiological tools (e.g., EKG, eye tracking) and neuroimaging tools (e.g., fMRI, EEG) in Information Systems (IS) research. There is much interest in the social sciences in capturing objective data directly...

This paper analyzes the tradeoffs associated with relying on performance versus ability measures in executive compensation. We propose a principal-agent model in which the principal designs the compensation scheme to be contingent on the outcome of interest to the principal along with a noisy...

We investigate the impact of supplemental information displays on the quality of decisions made using a common strategic performance measurement system, the Balanced Scorecard. A distinguishing feature of the balanced scorecard (BSC) is the number and diversity of its metrics. To effectively...

This paper proposes an agency model with moral hazard and adverse selection of the relationship between a university and its president, and constructs a unique dataset to examine the determinants of the compensation of university presidents. In our model, the outcome of interest to the...

This paper examines the role of multiple measures of performance in a principal-agent model incorporating both moral hazard and adverse selection. The outcome of interest to the principal depends stochastically on the agent’s unobservable ability and effort, while the principal implements a...

Managerial ability plays a vital role in the performance of business enterprises; however, such efforts are not directly observable. This study estimates managerial ability within the insurance sector of the economy based on two data sets from two different Asian countries. We estimate...

We study the impact of activity-based costing (ABC) on adoption of world-class manufacturing (WCM) practices and plant performance. In contrast to earlier research that estimates the direct impact of ABC on plant performance, we develop an alternative research model to study the role of...

Neuropsychological studies propose that listeners unconsciously assess speakers’ trustworthiness via their facial expressions. Building on this theory, we investigate how investors respond to CEOs’ dynamic hemifacial asymmetry of expressions (HFAsy) shown on CNBC’s video interviews about...

The growing gap between the pay of executives and employees has been the subject of much media publicity and political attention in recent times. We analyze the pay gap between executives and employees, focusing on three components: executive pay premium relative to industry peers; employee pay...

In this paper we investigate whether selling, general and administrative (SG&A) expenditure (excluding R&D and advertising expenditure) creates a long-lived asset. GAAP requires SG&A expenditure to be expensed immediately as a period cost to recognize using up of economic benefits. We...