This paper examines the provision of managerial investment incentives by an accounting based incentive scheme in a … multiperiod agency setting in which an impatient manager has to choose between mutually exclusive investment projects. We study … the properties of accounting rules that motivate an impatient manager to exert unobservable effort and to make optimal …

This paper examines the provision of managerial investment incentives by an accounting based incentive scheme in a … multiperiod agency setting in which an impatient manager has to choose between mutually exclusive investment projects. We study … the properties of accounting rules that motivate an impatient manager to exert unobservable effort and to make optimal …

This paper considers the role of accrual accounting in providing investment incentives. In a simple multiperiod … residual income. Conditions are analyzed under which accrual accounting improves the solution to the principal's problem in … comparison with a cash flow based performance fee. The role of accounting lies in (i) improving cash flow-sharing between …