In this study, we examine two factors that impact managers' willingness to share private information during the project review stage of capital budgeting. Drawing on the cognitive dissonance theory and the agency theory, we find that both high perceived personal responsibility and the use of...

A significant and increasing number of North American organizations use tangible rewards to motivate their employees. Despite the widespread use of tangible rewards, there is limited understanding as to what makes them effective. Our study has two related purposes. First, we use a lab experiment...

Managers can use private information to strategically misrepresent costs and consume additional resources at the expense of the firm. However, past research has demonstrated that managers do not always fully misrepresent, thus failing to display economically rational decision making. This paper...

One principle use of budgets is to elicit private information from subordinates in order to allow superiors to make better decisions. However, self-interested subordinates may bias their budget reports for personal gain, thus reducing the value of their budget reports to superiors. We examine...

This paper documents that previous experience under a performance evaluation system can systematically bias decision makers' subsequent evaluations. In the experiment reported in this paper, subjects made a series of investment decisions under one of four accounting systems, created by crossing...