Credence goods markets, such as those for car repairs and medical treatments, are generally characterized by an ex-ante and ex-post information asymmetry between the uninformed buyer and the informed seller. Previous literature demonstrates that efficiency and fraud in a monopolist credence...

This study examines how principals adjust their control over agents based on their prior controlling experience. According to standard economic theory, principals should be equally willing to decrease their control as they are to increase it. However, I use psychological theory to predict that...

Prior research finds that relative performance information can enhance motivation and performance. However, its impact on workers’ tendency to exceed their work capacity remains largely unknown. To address this gap, we conducted two experiments that investigate the effect of relative...

Operating distortion causes inefficiencies in performance measurement systems and typically remains hidden in firms' operational layers, unless managers report its occurrence. One obstacle to managers reporting operating distortion is that they often benefit economically from remaining silent...

Over the past several decades, technological advancements in information technology and data science have increasingly enabled firms to produce and distribute information, which challenges long-standing ideas about the role of managerial reporting in firms. We design a series of laboratory...

Of all my activities as a scholar, writing tends to take up most of my time. Accordingly, I have made it my mission to write as efficiently and effectively as possible. In this manuscript, which is reading material for my academic writing course at WHU - Otto Beisheim School of Management, I...

Although relative performance feedback can positively influence employee performance, its effect tends to be mixed for employees who underperform compared to their peers. We conducted a field experiment testing whether basing relative performance feedback on inputs, which is relative performance...

To reveal to the public whether firms pay their fair share of taxes, regulators increasingly mandate public tax disclosures. One assumption is that these disclosures help stakeholders, such as retail investors, identify aggressive tax avoiders. However, we find that retail investors become worse...