This study explores the effect of financial managers’ organizational identity (OI) on improving financial performance under fixed salary contracts and balanced budget restrictions in Japanese local governments (LGs). LGs enter compensation contracts based on fixed salaries with financial...

This study explores the effect of employee organizational identity on developing effective compensation contracts to improve organizational performance. We adopt the economic identity theory to mathematically model and test this model using data from a Japanese listed firm that uses an...

Agency theory is a powerful tool but it is not all-encompassing due to the fact that it focuses mainly on pecuniary motivation. In this paper, therefore, by simply extending existing models that rely on agency theory, and by incorporating complex human factors into them, we examine the role of...