Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal's active role in these decisions. We experimentally investigate this role by studying how a principal's choice for a truth-telling incentive contract,...

This study examines whether the CFO’s unconscious verbal mimicry of the CEO is associated with the company’s financial reporting quality. We measure verbal mimicry using Language Style Matching between the CEO and CFO (CEO-CFO LSM). We predict that high CEO-CFO LSM is associated with lower...

In hierarchical organizations, we know little about how past manager-employee experiences affect employees' behavior towards their future subordinates when they are being promoted to the next level. We predict that contagion takes place (i.e., employees mimic their former manager’s behavior...

Both employees’ influence activities and their personal identities can trigger managers’ favoritism in organizations. We experimentally study how managers allocate a bonus pool among employees who can contribute to a team pool but can also try to directly influence their manager. Results...

We experimentally examine whether ranking employees on a social dimension can help them learn something about their self-concept and can foster better ethical decisions afterwards. We examine this question in the context of popular employee-giving programs, whereby proponents argue that such...

Good relationships between middle-level managers and employees are critical to many companies because they can enhance cooperation and motivate effort from all parties. In this paper, we experimentally examine how organizational interventions from the top of company to motivate employees via...

Principals make decisions on various issues, ranging from contract design to control system implementation. Few studies examine the principal’s active role in these decisions. We experimentally investigate this role by studying how a principal’s choice for a truth-telling incentive contract,...