We use an experiment to test the hypothesis that adding discretionary adjustment to performance-based pay strengthens the sorting of employees based on how strongly they identify with the organization's objectives. Our conceptualization of identification is grounded in identity economics, which...

To improve the quality of performance evaluation and compensation decisions, managers can undertake costly searches for additional information. Prior accounting research suggests managers are willing to undertake these costly information searches because they have social preferences (i.e.,...

In this study, I examine whether principals' experience with control decisions produces asymmetry in how they adjust their control over agents. Principals should be equally willing to decrease their control over agents as they are to increase their control over agents. However, building on...