Theoretical analyses of (optimal) performance measures are typically performed within therealm of the linear agency model. This model implies that, for a given compensation scheme,the agent's optimal effort is unrelated to the amount of noise in the performance measure...

Ludewig and Sadowski (2009) empirically examine the economic value of organizationalcapital. They use a comprehensive panel data set from the Institute for EmploymentResearch (IAB) that provides standard information about inputs and outputs of theproduction process of German corporate...