This study examines how control elements of a firm affect managerial decision making. The firm operates a network of 59 profit centers. It uses a transfer-pricing system designed to deal with externalities individual profit centers can impose on other profit centers. Further, profit center...

We revisit the question of how performance measures are used to evaluate business unit managers in response to intra-firm spillovers because prior studies have documented conflicting empirical evidence. Specifically, we are interested in variation in the relative incentive weightings of...

We study theoretically and empirically the relation between altruism preferences and incentive contract design. Theoretically, we extend Fischer and Huddart (2008) to investigate how social norms reinforce altruism preferences, thus affecting the optimal contract design related to incentive...

Little attention has been given to the role of leadership characteristics in the organization design literature despite significant evidence of its importance in explaining firm behavior. This study develops and tests a model to assess the effects of leadership style on three control choices...

Accounting performance measures are often argued to lead to short-sighted behavior by managers facing intertemporal decisions. We assess the association between different types of performance measures and the time horizon of business unit managers who have profit responsibility. Our results,...