Work

A field study of the impact of a performance-based incentive plan

Year: 1996

Type: article

Abstract: Much management accounting research focuses on design of incentive compensation contracts. A basic assumption in these contracts is that performance-based incentives improve employee performance. This paper reports on a field test of the multi-period incentive effects of a performance-based compensation plan on the sales of a retail establishment. Analysis of panel data for 15 retail outlets over 66 months indicates a sales increase when the plan is implemented, an effect that persists and increases over time. Sales gains are significantly lower in the peak selling season when more temporary workers are employed.

Source: Journal of Accounting and Economics

DOI: 10.1016/0165-4101(95)00418-1

Authors: Rajiv D. Banker, Seok-Young Lee, Gordon Potter

Institutions: University of Minnesota, Sungshin Women's University, Cornell University

Language: English

Topic: Accounting and Organizational Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,170