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.
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Employment Horizon and the Choice of Performance Measures: Empirical Evidence from Annual Bonus Plans of Loss-Making Entities
Michal Matejka (University of Michigan), Kenneth A. Merchant (USC), and Wim A. Van Der Stede (London School of Economics) examine the extent to which the presence of employment horizon issues affects the relative emphasis on financial versus nonfinancial performance measures in annual bonus plans.
Performance Measure Choice and Target Setting in Loss-Making Firms
Kenneth A. Merchant (USC), Wim A. Van Der Stede (USC), and Michal Matejka (University of Michigan) share that prior research has shown the absence of a significant link between financial performance measures and cash incentive payments in loss-making firms, but only conjectures have been offered to explain this finding.
Performance Measure Choice and Target Setting in Loss-Making Firms
Kenneth A. Merchant (USC), Wim A. Van Der Stede (USC), and Michal Matejka (University of Michigan) examine the choice of performance measures and performance target difficulty in CEO annual bonus plans in loss-making firms.