Contest Schemes and Dynamic Incentive Provision

Published Online:https://doi.org/10.1287/mnsc.2022.00035

References

  • Aranda C, Arellano J, Davila A (2014) Ratcheting and the role of relative target setting. Accounting Rev. 89(4):1197–1226.CrossrefGoogle Scholar
  • Aranda C, Arellano J, Davila A (2017) Organizational learning in target setting. Acad. Management J. 60(3):1189–1211.CrossrefGoogle Scholar
  • Arya A, Fellingham J, Glover J (1997) Teams, repeated tasks, and implicit incentives. J. Accounting Econom. 23(1):7–30.CrossrefGoogle Scholar
  • Baiman S, Rajan MV (1995) The informational advantages of discretionary bonus schemes. Accounting Rev. 70(4):557–579.Google Scholar
  • Baldenius T, Glover J, Xue H (2016) Relational contracts with and between agents. J. Accounting Econom. 61(2–3):369–390.CrossrefGoogle Scholar
  • Bol J, Lill J (2015) Performance target revisions in incentive contracts: Do information and trust reduce ratcheting and the ratchet effect? Accounting Rev. 90(5):1755–1778.CrossrefGoogle Scholar
  • Budde J, Hofmann C (2011) Dynamic bonus pools. Working paper, University of Bonn, Ludwig Maximilian University of Munich, Germany.Google Scholar
  • Casas-Arce P, Holzhacker M, Mahlendorf M, Matĕjka M (2018) Relative performance evaluation and the ratchet effect. Contemporaenous Accounting Res. 35(4):1702–1731.CrossrefGoogle Scholar
  • Che Y-K, Yoo S-W (2001) Optimal incentives for teams. Amer. Econom. Rev. 91(3):525–541.CrossrefGoogle Scholar
  • Chen K-P (2003) Sabotage in promotion tournaments. J. Law Econom. Organ. 19(1):119–140.CrossrefGoogle Scholar
  • Christensen PO, Feltham GA, Sabac F (2005) A contracting perspective on earnings quality. J. Accounting Econom. 39(2):265–294.CrossrefGoogle Scholar
  • Christensen PO, Frimor H, Sabac F (2020) Real effects of soft information. Contemporaenous Accounting Res. 37(1):514–541.CrossrefGoogle Scholar
  • Ederhof M, Rajan M, Reichelstein S (2011) Discretion in managerial bonus pools. Foundation Trends Accounting 5(4):243–316.CrossrefGoogle Scholar
  • Fan Q, Li W (2018) Leading indicator variables and managerial incentives in a dynamic agency setting. Rev. Accounting Stud. 23(4):1715–1753.CrossrefGoogle Scholar
  • Fisher J, Maines L, Peffer S, Sprinkle G (2005) An experimental investigation of employer discretion in employee performance evaluation and compensation. Accounting Rev. 80(2):563–583.CrossrefGoogle Scholar
  • Fudenberg D, Tirole J (1990) Moral hazard and renegotiation in agency contracts. Econometrica 58(6):1279–1320.CrossrefGoogle Scholar
  • Gaver JJ, Gaver KM, Austin JR (1995) Additional evidence on bonus plans and income management. J. Accounting Econom. 19(1):3–28.CrossrefGoogle Scholar
  • Gibbons R, Murphy K (1990) Relative performance evaluation for chief executive officers. Industry Labor Related Rev. 43(3):30–51.CrossrefGoogle Scholar
  • Gibbons R, Murphy K (1992) Optimal incentive contracts in the presence of career concerns: Theory and evidence. J. Political Econom. 100(3):468–505.CrossrefGoogle Scholar
  • Glover J, Xue H (2020) Team incentives and bonus floors in relational contracts. Accounting Rev. 95(6):181–212.CrossrefGoogle Scholar
  • Goukasian L, Wan X (2010) Optimal incentive contracts under relative income concerns. Math. Financial Econom. 4:57–86.CrossrefGoogle Scholar
  • Green J, Stokey N (1983) A comparison of tournaments and contracts. J. Political Econom. 91(3):349–364.CrossrefGoogle Scholar
  • Guidry F, Leone AJ, Rock S (1999) Earnings-based bonus plans and earnings management by business-unit managers. J. Accounting Econom. 26(1–3):113–142.CrossrefGoogle Scholar
  • Healy P (1985) The effect of bonus schemes on accounting decisions. J. Accounting Econom. 7(1–3):85–107.CrossrefGoogle Scholar
  • Holmström B (1999) Managerial incentive problems: A dynamic perspective. Rev. Econom. Stud. 66(1):169–182.CrossrefGoogle Scholar
  • Holmstrom B, Milgrom P (1987) Aggregation and linearity in the provision of intertemporal incentives. Econometrica 55(2):303–328.CrossrefGoogle Scholar
  • Holmstrom B, Milgrom P (1991) Multitask principal-agent analyses: Incentive contracts, asset ownership, and job design. J. Law Econom. Organ. 7:24–52.CrossrefGoogle Scholar
  • Holthausen RW, Larcker DF, Sloan RG (1995) Annual bonus schemes and the manipulation of earnings. J. Accounting Econom. 19(1):29–74.CrossrefGoogle Scholar
  • Holzhacker M, Kramer S, Matĕjka M, Hoffmeister N (2019) Relative target setting and cooperation. J. Accounting Res. 57(1):211–239.CrossrefGoogle Scholar
  • Ickes BW, Samuelson L (1987) Job transfers and incentives in complex organizations: Thwarting the ratchet effect. RAND J. Econom. 18:275–286.CrossrefGoogle Scholar
  • Imhof L, Kräkel M (2014) Bonus pools and the informativeness principle. Eur. Econom. Rev. 66:180–191.CrossrefGoogle Scholar
  • Indjejikian R, Nanda D (1999) Dynamic incentives and responsibility accounting. J. Accounting Econom. 27(2):177–201.CrossrefGoogle Scholar
  • Laffont JJ, Tirole J (1988) The dynamics of incentive contracts. Econometrica 56(5):1153–1175.Google Scholar
  • Lazear E (1989) Pay equality and industrial politics. J. Political Econom. 97(3):561–580.CrossrefGoogle Scholar
  • Lazear E, Rosen S (1981) Rank-order tournaments as optimum labor contracts. J. Political Econom. 89(5):841–864.CrossrefGoogle Scholar
  • MacLeod W (2003) Optimal contracting with subjective evaluation. Amer. Econom. Rev. 93(1):216–240.CrossrefGoogle Scholar
  • Meyer M (1995) Cooperation and competition in organizations: A dynamic perspective. Eur. Econom. Rev. 39(3–4):709–722.CrossrefGoogle Scholar
  • Meyer M, Vickers J (1997) Performance comparisons and dynamic incentives. J. Political Econom. 105(3):547–581.CrossrefGoogle Scholar
  • Milgrom P, Roberts J (1992) Economics, Organization & Management (Prentice-Hall, New York).Google Scholar
  • Murphy KJ, Oyer P (2001) Discretion in Executive Incentive Contracts: Theory and Evidence. Working paper, University of Southern California, Stanford University, California.Google Scholar
  • Murphy WH, Sohi R (1995) Salespersons’ perceptions about sales contests: Toward a greater understanding. Eur. J. Marketing 29(13):42–66.CrossrefGoogle Scholar
  • Prendergast C (1999) The provision of incentives in firms. J. Econom. Literature 37(1):7–63.CrossrefGoogle Scholar
  • Rajan M, Reichelstein S (2006) Subjective performance indicators and discretionary bonus pools. J. Accounting Res. 44(3):585–618.CrossrefGoogle Scholar
  • Rajan M, Reichelstein S (2009) Objective vs. subjective indicators of managerial performance. Accounting Rev. 84(1):209–237.CrossrefGoogle Scholar
  • Sabac F (2008) Dynamic incentives and retirement. J. Accounting Econom. 46(1):172–200.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.