We collect detailed survey data on financial managers' annual bonus plans and extensively validate a measure of the willingness to engage in unethical behavior using a panel of 253 respondents. Our main finding suggests that incentives to meet financial targets are positively associated with...

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....