Employment Horizon and the Choice of Performance Measures: Empirical Evidence from Annual Bonus Plans of Loss-Making Entities
May 5, 2008
Michal Matějka (University of Michigan), Kenneth A. Merchant (USC), and Wim A. Van Der Stede (School of Economics and Political Science) examine the extent to which employment horizon concerns affect the relative emphasis on financial versus nonfinancial performance measures in annual bonus plans.