... within-firm information asymmetry is high. The paper especially speaks to the planning role of budgeting and forecasting, as opposed to the relatively more extensively studied evaluation and incentive role. JEL Classifications: M12; M41. We appreciate the helpful comments and suggestions...

...Xiaotao (Kelvin) Liu; Yu Tian; Yue (May) Zhang ABSTRACT We experimentally investigate how supervisor pay transparency interacts with vertical pay dispersion to affect subordinates' reporting honesty in a budgeting setting. We find that the effect of supervisor pay transparency relative to pay...

...Jason L. Brown; Joseph G. Fisher; Sean A. Peffer; Geoffrey B. Sprinkle ABSTRACT Participative budgeting allows superiors to elicit private information from subordinates, which, in turn, should enable superiors to make better decisions. Self-interested subordinates, however, may bias their budget...

...Steven T. Schwartz; Eric E. Spires; David E. Wallin; Richard A. Young ABSTRACT We conduct two experiments to study the effect of aggregated budget proposals on budgetary slack when superiors cannot commit to an acceptance policy. Prior research on similar settings suggests preferences for fairness...