This paper presents a review of research regarding the effects of monetary executive incentives on risk-taking. More precisely, we investigate executives' risk-taking (i) in response to the curvature (steepness, convexity, concavity) of the compensation function and (ii) with regard to reference...

Prior research demonstrates that relative performance information affects effort and performance. However, little is known about the qualitative design parameters of these information systems. This study examines, via an experiment, how adding performance category labels to ranks (e.g.,...

Purpose: The purpose of this paper is to investigate if and how firms approach debiasing and what determines its success. In particular, this study examines if debiasing is effective in reducing cognitive decision biases. This paper also investigates organizational characteristics that...

Purpose: In the aftermath of the financial crisis, the influence of competitive compensation systems on employee risk taking has gained increasing attention. As the renouncement of such incentive schemes might entail severe disadvantages regarding employee motivation, standard setters have...

International Accounting Standard 39 (IAS 39) and the Statement of Financial Accounting Standard 159 (SFAS 159) both require a firm to include adjustments to the fair values of its liabilities resulting from changes in its own credit risk in net income. Previous research confirms that including...