We investigate whether the weights managers place on multiple performance measures for the purpose of determining performance-contingent pay depend on whether weights are determined before or after employees exert effort. We propose that, while the overall purpose of determining these weights...

This paper uses an experiment to examine whether involvement in scorecard implementation can mitigate the effects of motivated reasoning that occur when the scorecard is framed as a causal chain rather than merely as a balanced set of measures. Psychological research on motivated reasoning...

Managing organizations means managing people, and people have powerful motivations that shape their beliefs and judgments. These motivations can lead to disastrous business outcomes when they bias crucial decisions, such as selecting and evaluating strategy

Strategic performance measurement systems operationalize firm strategy with a set of performance measures. A consequence of such alignment is the tendency for managers to lose sight of the strategic construct(s) the measures are intended to represent, and subsequently act as though the measures...

This paper examines the role of earnings quality in the future performance of firms that marginally miss or beat analysts' forecasts. We focus primarily on two groups of firms: those that miss their forecast but appear not to have attempted to exceed it by managing earnings, and those that...