<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Using a sample of 140 managers, we investigate the use of various performance metrics in determining the periodic assessment, bonus decisions, and career paths of business unit managers. We show that the weight on accounting return measures is associated with the authority of these...

Chenhall and Moers (European Accounting Review, this issue, pp. 173-195) provide an excellent overview of the econometrics of endogeneity. In response to their discussion I argue that researchers should be courageous enough to set aside endogeneity concerns when their research question is...