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The Accounting Review (2023) 98 (7): 239–260.
Published: 01 November 2023
... that relatively lower performing employees are selected for a promotion is increased. We develop theory about how two important organizational characteristics—transparency about individual performance levels and the presence of group incentives—jointly affect managers’ tendency to strategically influence...
The Accounting Review 1–20.
Published: 14 September 2023
...Steven J. Kachelmeier; R. Alan Webb; Michael G. Williamson ABSTRACT Toward the goal of reconciling conflicting arguments on whether performance-based incentives facilitate or impede divergent thinking, we identify a feature common to prior demonstrations of negative incentive effects...
The Accounting Review (2023) 98 (2): 361–387.
Published: 01 March 2023
... is associated with higher same-year abnormal earnings but at the same time with lower next-year earnings and stock returns. Combined, our findings suggest that target difficulty is an important incentive design choice that affects performance and executive compensation. Data Availability: Data used...
The Accounting Review (2022) 97 (4): 131–154.
Published: 01 July 2022
... data analytics, identifying outliers, and addressing false positives ( Ernst & Young [EY] 2017 ; KPMG 2017 ; American Institute of Certified Public Accountants [AICPA] 2017 ). These incentive issues should interest firms and regulators as they consider improvements to firms' incentive and quality...
The Accounting Review (2022) 97 (3): 373–393.
Published: 01 May 2022
...: Accepted by Michael G. Williamson, under the Senior Editorship of Mary E. Barth. 1 4 2019 1 6 2021 2022 contracting incentives leadership leading by example social mission We appreciate the helpful comments and suggestions from Willie Choi, Bart Dierynck, Richard Lee...
The Accounting Review (2022) 97 (1): 99–122.
Published: 01 January 2022
...Pablo Casas-Arce; F. Asís Martínez-Jerez ABSTRACT This paper investigates whether leadership style moderates the effect of leader incentives on the performance of teams. In collaboration with a Latin-American bank, we engineered a field experiment by designing a series of contests among the bank...
The Accounting Review (2021) 96 (5): 133–156.
Published: 01 September 2021
... different abilities, an input-based allocation also leads to less effort intensity, defined as puzzles solved per unit of time spent. We attribute these findings to fairness considerations, an interpretation we corroborate in a second experiment with purely individual incentives that finds the same effort...
The Accounting Review (2020) 95 (6): 395–412.
Published: 01 November 2020
... Availability: The confidentiality agreement with the company that provided data for this study precludes the dissemination of detailed data without the company's consent. employee compensation incentives bonus penalty prospect theory Humans respond to the prospect of reward, as well as the fear...
The Accounting Review (2020) 95 (6): 125–149.
Published: 01 November 2020
... returns: future realized stock returns, errors in forecasting fundamentals, errors in forecasting the expected return to risk, and biases relating to analysts' incentives. Our results suggest that all four sets help explain target price implied returns, with errors in forecasting the expected return...
Includes: Supplementary data
The Accounting Review (2020) 95 (5): 265–278.
Published: 01 September 2020
... forces behind why income smoothing occurs. In this response, I refute Hemmer's claims. I show that income smoothing does occur, and I clarify the economic forces that lead to the result. In a one-period model, the principal has to use the incentive contract for that period to motivate the agent's...
The Accounting Review (2019) 94 (3): 233–250.
Published: 01 May 2019
... audit quality accountability market structure incentives auditor hiring This paper uses experimental economic markets to examine the impact on audit quality of altering auditors' accountability to both managers and investors. We manipulate the auditors' economic accountability to managers...
The Accounting Review (2019) 94 (3): 329–344.
Published: 01 May 2019
...Jennifer E. Nichol ABSTRACT This study examines the effects of incentive contract framing on misreporting and entitlement. I conduct a 2 × 2 between-subjects experiment, manipulating incentive contract framing (Bonus/Penalty) and the awareness of the opportunity to misreport...
The Accounting Review (2019) 94 (2): 249–266.
Published: 01 March 2019
...Steven J. Kachelmeier; Laura W. Wang; Michael G. Williamson ABSTRACT In two experiments, we examine whether performance-contingent incentives facilitate the creative process by enhancing the initial preparation that precedes creative incubation. The defining characteristic of both experiments...
The Accounting Review (2018) 93 (3): 83–103.
Published: 01 May 2018
..., in addition to current job RPI, improves the effective sorting of workers, but it comes at the cost of reduced promotion-based incentives. My results suggest that, notwithstanding the benefits documented in previous studies, RPI also imposes potential costs that firms should take into account when deciding...
The Accounting Review (2018) 93 (1): 213–234.
Published: 01 January 2018
...Katlijn Haesebrouck; Martine Cools; Alexandra Van den Abbeele ABSTRACT We examine how incentive systems influence knowledge transfer between group members with equal or different status who solve an interdependent task. In our experiment, group members receive group or individual incentives, while...
The Accounting Review (2016) 91 (1): 99–117.
Published: 01 January 2016
... contracts with all parties directly or delegates part of the contracting authority to one of the agents. Delegated contracts improve risk sharing and generate implicit incentives for the agent entrusted with contracting authority. However, delegated contracts also entail a loss of control in motivating...
The Accounting Review (2014) 89 (4): 1197–1226.
Published: 01 July 2014
... period for a total of 1,105 branch-years observations. July 2012 December 2013 2014 budget budgeting process ratcheting target setting management control incentives We thank participants at the European...
The Accounting Review (2013) 88 (3): 945–975.
Published: 01 May 2013
... by recording higher operating expenses. We also find that managers have various incentives to manage earnings. Executive compensation is not tied to firm performance in the transition period as it is in adjacent fiscal years. Growth firms, firms with poor stock returns, and firms with weak external...
The Accounting Review (2012) 87 (4): 1309–1334.
Published: 01 July 2012
...Mirko S. Heinle; Christian Hofmann; Alexis H. Kunz ABSTRACT We examine the impact of identity preferences on the interrelation between incentives and performance measurement. In our model, a manager identifies with an organization and loses utility to the extent that his actions conflict...
The Accounting Review (2011) 86 (6): 1909–1934.
Published: 01 November 2011
... employee decisions. We find that tighter monitoring gives rise to implicit incentives in the form of sharp increases in employee termination linked to “excessive” use of decision-rights. Consistent with these implicit incentives, we find that employees in tightly monitored business units are less likely...