This field experiment investigates how different levels of aggregation in relative performance information (RPI) impact employee performance in environments with multiple tasks. We randomly assign store employees of a retail chain to three groups: RPI on overall performance (control group), RPI...

Using current performance to set future targets can discourage effort and reduce performance. Our study examines whether this ratchet effect also undermines incentives of high-level managers and executives. We use a dynamic model to show that empirical tests used in prior literature can falsely...

This study examines whether introduction of fixed-price regulation influences firms to increase the elasticity of their cost structures and to reduce the asymmetric behavior of cost in response to changes in volume. It also examines variations in the extent of such responses arising from...

This paper examines how corporate reliance on budgets is affected by major changes in the economic environment. We combine survey and archival data from the economic crisis that began in 2008. The results indicate that, as a result of the economic crisis, budgeting became more important for...

This paper examines how different sources of CEO power affect the incorporation of performance feedback in target adjustments. We theorize that both CEOs' structural and prestige power can bias the target updating process if they use their power to extract rent by bargaining for lower targets....

Prior accounting studies on relative performance information (RPI) have mainly considered the effects of RPI on employees’ performance. This study extends this stream of research by investigating relational effects of RPI that capture RPI recipients’ attitudes towards RPI provision....

Online platforms such as Amazon.com, Google, and Glassdoor have to design policies for submitting ratings. We investigate how lowering barriers to rate affects the informativeness of the rating consensus - a crowd-sourced performance measure. In 2020, Amazon.com introduced a new one-tap rating...