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This study investigates when and why intra-year bonus target revisions occur. This is important as intra-year target revisions occur regularly in practice but are not well understood. Specifically, we analyze two potential drivers of intra-year bonus target revisions: reduced managerial...
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We examine how decision makers adjust their allocation decisions in risky environments, and how organizational context influences these decisions. Superiors often have discretion over bonus allocations, allowing them to make adjustments for the risk faced by agents. It is thus important to...
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This study examines the effects of profit-sharing on honesty in managerial reporting. While profit-sharing plans are widely used, there remains a need for understanding how profit-sharing plans affect honesty in managerial reporting. We investigate two commonly observed profit-sharing plans...
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We examine theoretically and experimentally how combining between-team and within-team incentives affects behavior in team tournaments. Theory predicts that free-riding is likely to occur when there are only between-team incentives, and offering within-team incentives may solve this problem....
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