Managing organizations means managing people, and people have powerful motivations that shape their beliefs and judgments. These motivations can lead to disastrous business outcomes when they bias crucial decisions, such as selecting and evaluating strategy

We conduct two experiments to examine potential causes of the disposition effect. In Experiment 1, we rule out beliefs in mean reversion as a cause of the disposition effect. Although a belief in the mean reversion of stock prices should be independent of whether an investor owns or only follows...

A central feature of accounting is the use of measures to represent key elements of performance across multiple strategic objectives. In this study, we directly examine the neural processing of measures and strategic objectives. Our findings suggest that the brain processes measures (which are...

Prior research finds that controls that induce cooperation among collaborators on a project increase trust, and that this increased trust increases subsequent cooperation among collaborators. We extend this work by investigating how controls influence cooperative behavior in two settings. The...

Strategic performance measurement systems operationalize firm strategy with a set of performance measures. A consequence of such alignment is the tendency for managers to lose sight of the strategic construct(s) the measures are intended to represent, and subsequently act as though the measures...

Employees often perform tasks with multiple dimensions. In this study, we examine how employees’ performance on multidimensional tasks differs under different control structures. We conduct two experiments in which we manipulate the presence of compensation controls and the presence of...