Year: 2010
Type: dissertation
Study design: Observational Study
Abstract: In the aftermath of the financial crisis 2008, numerous experts have offered explanations to\nwhat actually caused this massive collapse of the world economy. This paper explores an\nalternative suggestion. Using data from 178 alumni from a business school in Sweden, we\nempirically test if formula bonuses lower moral awareness and whether subjectivity as a basis\nfor evaluation mitigates the predicted negative side effects. We have not found evidence to\nsupport that formula bonuses lower moral awareness. However, results suggest that alumni\nwith both subjective and formula bonuses demonstrate higher moral awareness than alumni\nwith only formula bonuses. This explorative study contributes specifically to the research on\nhow moral awareness is affected by the different parts in the compensation package and more\ngenerally to the literature on how reward schemes affect behaviour.
Authors: Victor Lundberg, Christofer Montell
Institution: University of Gothenburg
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2151206375