This study investigates if and how the influence of compensation interdependence on risk-taking depends on mutual monitoring of risky investment decisions. We argue that individuals under compensation interdependence have a behavioral incentive for higher risk-taking if mutual monitoring is...

We investigate by means of an experiment how the perception of preventive management controls depends on task complexity and how both affect effort allocation in a multi-task environment. We predict and find that individuals perceive controls as more negative, i.e., annoying and obstructive, if...

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...