Despite the trend in investigating combinations of MC practices that form packages or systems, there is ambiguity about what is meant by a “control package” or “control system.” In this paper, we address questions related to MC as a package and as a system, both from a conceptual and...

In this study, we investigate the choice of performance measures in promotion decisions. In particular, we examine the extent to which managers incorporate different performance measures for different types of job assignment. Based on a simple theoretical framework, we predict that, in making...

In this study, we investigate the choice of performance measures in promotion decisions. In particular, we examine the extent to which managers incorporate different performance measures for different types of job assignment. Based on a simple theoretical framework, we predict that, in making...

In this study, we examine the effectiveness of a performance management system that explicitly assesses an employee's potential for the purpose of making informed promotion decisions. We exploit the change in a performance management system that shifts from the implicit identification of high...

While prior research on performance evaluation bias has mainly focused on the determinants and consequences of rating errors, we investigate which mechanisms firms use to actively reduce these errors. We empirically examine in how far firms create implicit incentives to supervisors to provide...

The importance of human capital in building and maintaining competitive advantage is undisputed, and ensuring that employees invest in their human capital has thus become of utmost importance to firms. Despite this, management control research has not dedicated much attention to the personnel...

In this study, we investigate the determinants and consequences of budget reallocations, i.e., corrective actions to the budget made during the year. In particular, we analyze in how far allocation decisions regarding the initial budget drive subsequent reallocations, over and above the new...

This study provides descriptive evidence on target setting policies in multi-divisional firms. Despite the importance of performance targets in practice, research mainly focuses on a few key areas in target setting, neglecting many other important aspects of target setting in organizations....