Intertemporal aggregation and incentives

Intertemporal aggregation results in a summarization of information and a natural delay in the release of information. We study a principal-agent model and show that intertemporal aggregation can be an optimal feature of a performance evaluation system. We then highlight subtleties associated with valuing additional information as the level of aggregation of existing information is varied.

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Year of publication:	2004
Authors:	Arya, Anil ; Glover, Jonathan ; Liang, Pierre Jinghong
Published in:	European Accounting Review. - Taylor & Francis Journals, ISSN 0963-8180. - Vol. 13.2004, 4, p. 643-657
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005495571