This paper describes the findings of a study aimed at providing an international replication of a US-based study by Gibbs et al. [Gibbs, M., Merchant, K., Van der Stede, W., & Vargus, M. (2004). Determinants and effects of subjectivity in incentives. The Accounting Review, 79(2), 409–436; Gibbs, M., Merchant, K., Van der Stede, W., & Vargus, M. (2006). The structure of incentive contracts: Evid...

Although employee compensation reform in Chinese industrial sector has been discussed in the literature, the real changes in compensation system and pay practices have received insufficient attention and warrant further examination. This paper briefly reviews the preand post-reform compensation system, and reports the results of a survey of pay practices in the four major types of industrial en...

Do multi-divisional firms structure compensation contracts for division managers to mitigate information and incentive problems in their internal capital markets? Using Compustat Segment financial data and compensation data from a proprietary survey, I find evidence that compensation and investment incentives are substitutes: firms providing a stronger link to firm performance in incentive comp...

This paper examines the incentive effects caused by the interactions between unemployment insurance (UI) and sickness insurance (SI), two important components of Sweden’s social insurance system. There are two main topics of interest: how the sickness report rate and the length of the subsequent sick period among the unemployed are affected by (i) the limit of 300 workdays for UI benefits, and ...

Administrative access [7] Administrator meetings [8] Biennium carryover funds [9] Budget management [10] Budget revision logs [11] Interview expenses [12] Moving expenses [13] OPUS (Online Payroll Update System) [14] Position numbers [15] Relocation incentive payment [16] Salaries and compensation [17] Salary release-recapture policy [18] Service and Recharge center rates [19] Staff and student...

This study separates and compares sorting and incentive effects and analyses their contingencies in a real-effort laboratory experiment. Depending on the treatment, subjects have a choice between a piece rate, a budget-based and a fixed pay, or have no choice but are assigned to a compensation scheme. The results suggest that sorting effects have a greater impact on productivity than incentive ...

S-shaped incentive schemes and pay caps are fairly common in practice. This paper demonstrates the optimality of s-shaped incentive schemes and pay caps by incorporating salespeople’s aversion to pay inequity into the standard agency model. Our analysis shows that salespeople’s desire for pay fairness increases the convexity of the optimal incentive scheme at small sales but increases the conca...

Abstract This paper examines the incentive effect of a discontinuous and nonlinear compensation scheme, using the transaction data provided by two North American auto dealerships. Under the nonlinear scheme, a salesperson’s expected daily commission revenue critically depends on his position in the pay schedule on the day. We find that a measure of varying incentive intensity has a positive eff...

In this paper, we study the incentive mechanism design for real-time data aggregation, which holds a large spectrum of crowdsensing applications. Despite extensive studies on static incentive mechanisms, none of these are applicable to real-time data aggregation due to their incapability of maintaining PUs’ long-term participation. We emphasize that, to maintain PUs’ long-term participation, it...