Performance Measurement Technologies and the Trade-off of Risk and Incentives

This paper analyzes a principal's decision of when to invest in a performance measurement technology. Interestingly, higher risk may make such an investment less likely. In this case, the strength of incentives certainly decreases. If, however, an increase in risk induces an initially non-investing principal to invest, incentive strength may increase.

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Year of publication:	2007
Authors:	Gurtler, Oliver
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 6.2007, 1, p. 1-10
Publisher:	College of Business
Subject:	complements \| risk \| incentive strength \| performance measurement system

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; J33 - Compensation Packages; Payment Methods ; M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs)
Source:	RePEc - Research Papers in Economics

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