scholarly journals The role of subjectivity in mitigating incentive contracting risks

2021 ◽  
Author(s):  
Anne M Lillis ◽  
Mary A. Malina ◽  
Julia Mundy
Keyword(s):  
Empirical Evidence ◽  
Performance Measures ◽  
Risk Mitigation ◽  
Significant Risk ◽  
Behavioral Responses ◽  
Information Gathering ◽  
Performance Assessments ◽  
Prior Literature ◽  
Incentive Contracting

We examine how subjectivity in performance measurement and reward systems (PMRS) is used to mitigate incentive contracting risks. Drawing on data from 38 interviews with supervisory and subordinate managers in four firms, we provide a more comprehensive explanation of the role of subjectivity in risk mitigation than is evident in the prior literature. We provide empirical evidence of the importance firms place on the use of subjectivity to mitigate the risk of incentive misalignment and employee sorting errors relative to its welldocumented role in mitigating employee compensation risk. We find that incentive misalignment arising from unanticipated behavioral responses to performance measures is a particularly important risk, managed through subjective performance assessments. The extent of subjectivity we observe poses a significant risk of errors and bias. We observe that both vertical and horizontal information gathering and review by calibration panels are key strategies to mitigate the downside risk of subjectivity.

The Role of Performance Measure Noise in Mediating the Relation between Task Complexity and Outsourcing

2010 ◽  
Vol 22 (1) ◽  
pp. 75-102 ◽  
Author(s):  
Ge Bai ◽  
Freddy Coronado ◽  
Ranjani Krishnan
Keyword(s):  
Performance Measures ◽  
Transaction Cost Economics ◽  
Task Complexity ◽  
Performance Measure ◽  
For Profit ◽  
Mediating Role ◽  
Outpatient Departments ◽  
Incentive Contracting ◽  
External Vendors

ABSTRACT: This paper examines the effect of task complexity on a firm’s decision to outsource and the mediating role of performance measure noise. Using insights from agency and transaction cost economics theories, we predict that task complexity reduces the extent of outsourcing of the task. We further predict that one reason for the negative relation between task complexity and outsourcing is that task complexity increases the noise in performance measures. Noisy performance measures introduce problems in incentive contracting with external vendors and, hence, decrease the extent of outsourcing. Data from 305 inpatient and 1,255 ancillary and outpatient departments of for-profit hospitals provide support for our prediction that performance measure noise mediates the relation between task complexity and outsourcing.

Board Activity and Firm Performance

2017 ◽  
Vol 10 (1) ◽  
pp. 44-57
Author(s):  
Jyoti Paul
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Performance Measures ◽  
Firm Value ◽  
The Past ◽  
Point Estimates ◽  
Board Monitoring ◽  
The Impact ◽  
The Relationship

Because of recent failures in the past, the role of Board and the Board monitoring have become important. The directors are expected to be more accountable. In this study, the researcher tries to investigate the relationship between the level of board activity and firm value for firms in FMCG sector over a three-year period from 2010–2011 to 2012–2013. The primary aim of the article is to provide empirical evidence and specifically find out the impact of board activity measured by number of meetings and its impact on firm performance. The results indicate that the attendance in board meetings is significantly positively correlated with ROA. The OLS results with both the performance measures show that the point estimates of attendance at board meetings were significant indicating that attendance in such meetings is perceived to be an indicator of good monitoring activities of the board.

Elaborating the role of reflection and individual differences in the study of folk-economic beliefs

2018 ◽  
Vol 41 ◽  
Author(s):  
Kevin Arceneaux
Keyword(s):  
Decision Making ◽  
Individual Differences ◽  
Cognitive Processes ◽  
Evolutionary History ◽  
Behavioral Responses ◽  
History Of ◽  
Economic Beliefs

AbstractIntuitions guide decision-making, and looking to the evolutionary history of humans illuminates why some behavioral responses are more intuitive than others. Yet a place remains for cognitive processes to second-guess intuitive responses – that is, to be reflective – and individual differences abound in automatic, intuitive processing as well.

Membangun Fondasi Keilmuan Ekonomi Islam: Telaah Metodologi Muhammad Akram Khan

2017 ◽  
Vol 1 (2) ◽  
pp. 152-170
Author(s):  
Ahmad Ubaidillah
Keyword(s):  
General Theory ◽  
Empirical Evidence ◽  
Inductive Method ◽  
Ethical Values ◽  
Institutional Conditions ◽  
Faith Based ◽  
Behavioral Parameters ◽  
Science Methodology ◽  
Islamic Society

Throughout my experience in tracking down and reading books on faith-based economics, in this case Islam, there are no books that specifically list the title of "Islamic economics". If there is, it is only initiated or introduced. Most books coming down to us still use the titles starting with the word, for example, system, concept, principle, or the doctrine of Islamic economics. Why do the authors of the book Islamic economics seem not dared to give his book title with label "science"? I presume that Islamic economics has not been considered as a science. In building a science, methodology is required. Islamic Economics also requires a well-established methodology to build the foundation of science. The study answers questions; how is methodology which is offered by Muhammad Akram Khan to build Islamic economics. The method used in this research is the study of literature with qualitative approach.The result of study concludes that Khan offers methodology of Islamic economics, if summarized, written as follows: First, Islamic economics uses a framework derived from the texts of divinity (revelation). Second, Islamic economics uses the inductive method, which gives witness to the truth or falsity assumptions and predictions about the two criteria of rationality and empirical evidence. Third, Islamic economy is built on ethical values ​​such as justice, virtue, moderation, sacrifice, caring for others, in the analysis, as behavioral parameters. Fourth, Islamic economics is a normative discipline. Islamic Economics investigates ways and means to change the existing economy with Islamic economy. Fifth, Islamic economics ask different questions with conventional economics. Its attention is on welfare (falah) human and creating social and institutional conditions that maximize falah in society. Clearly, Islamic economics strongly supports research programs that help maximize falah. Furthermore, Khan elaborates several issues related to the methodology that often appears in the forum of Islamic economists. There are some problems that Khan proposes, they are the interaction with modern economics, the role of revelation, assuming ideal Islamic society, and the general theory of Islamic economics.

Service Quality and Repeat Purchase: The Moderating Effect of Perceived Value, and Satisfaction

2020 ◽  
Vol 11 (1) ◽  
pp. 5-5
Author(s):  
Aprihatiningrum Hidayati ◽  
Agus W. Soehadi ◽  
Aji Hermawan ◽  
Hartoyo Hartoyo
Keyword(s):  
Service Quality ◽  
Direct Effect ◽  
Purchase Intention ◽  
Perceived Value ◽  
Moderating Variables ◽  
Mediating Role ◽  
Prior Literature ◽  
Repeat Purchase ◽  
Purchase Satisfaction

The purpose of this study is to examine the direct and indirect effect of these determinants on repeat purchase. Competitive training industries impose pressure on managers to increase repeat purchase. Even though service quality and repeat purchase are well studied in prior literature, their determinants such as perceived value and satisfaction have not been fully investigated together as moderating variables. Most of literature stated both of perceived value and satisfaction as independent variables. Besides, most of literature consider purchase as an attitudinal (namely purchase intention), while this study focus on behavioural (namely repeat purchase). Data from a survey of 300 customers of public training are used to empirically evaluate the model. Results indicate that perceived value and the satisfaction have no direct effect on repeat purchase. However, these constructs indirectly influence repeat purchase through the mediating role of service quality. Satisfaction and perceived value play a major role in enhancing service quality, but do not directly impact repeat purchase. Interestingly, the direct effect on repeat purchases stems from service quality while recent researches suggest satisfaction is the antecedent. The findings suggest that training companies should invest more resources aimed at enhancing service quality through service delivery training for their employees. Even though prior research has considered the concepts studied here, this study aims to empirically evaluate a variety of antecedent factors that potentially affect repeat purchase. Relationships are established utilizing data collected in Indonesia (an increasingly important consumer market) which adds value to extant knowledge in this area. Keywords: path analysis, perceived value, repeat purchase, satisfaction, service quali

Sequential risk mitigation and the role of natural recovery in contaminated sediment projects

1998 ◽  
Vol 37 (6-7) ◽  
pp. 331-336 ◽  
Author(s):  
Stephen Garbaciak ◽  
Philip Spadaro ◽  
Todd Thornburg ◽  
Richard Fox
Keyword(s):  
Lower Cost ◽  
Risk Mitigation ◽  
Management Strategies ◽  
Source Control ◽  
Contaminated Sediment ◽  
Practical Observation ◽  
Ecosystem Recovery ◽  
Natural Recovery ◽  
Natural Processes

Sequential risk mitigation approaches the remediation of contaminated sediments in three phases designed to: (1) immediately reduce the ecological and human health risks associated with high levels of contamination, using methods such as the confinement or capping of high-risk materials; (2) reduce the risks associated with moderate levels of pollution to a minimum, on a less urgent schedule and at a lower cost; and (3) address areas of limited contamination through a combination of natural recovery and enhanced natural recovery (to aid or speed those natural processes). Natural recovery, the reduction of contaminant concentrations through natural processes, is based on the practical observation that overall ecosystem recovery appears to be largely a function of time. Sediment decomposition and the mixing of new and old sediments by bottom-dwelling organisms can both contribute to reduced contaminant concentrations. Knowledge of these processes--sediment decomposition, sediment mixing by bottom-dwelling organisms, and chemical residence time is critical in the development of appropriate ecosystem recovery and waste management strategies. Evaluations to support natural recovery predictions are designed to collect and evaluate information necessary to determine whether surface sediment chemical concentrations, with adequate source control, will reach the cleanup standards within a ten-year period.

scholarly journals Adrenal incidentalomas: imaging challenges—role of MDCT scan versus MRI in evaluating adrenal incidentalomas

2021 ◽  
Vol 52 (1) ◽  
Author(s):  
Monica Maher Amin Nawar ◽  
Sameh Abdel Aziz Zaky Hanna ◽  
Shereen Sadik El-Sawy ◽  
Sally Yehia Shokralla
Keyword(s):  
Significant Risk ◽  
Adrenal Incidentaloma ◽  
Adrenal Incidentalomas ◽  
Specific Patient ◽  
Contrast Enhanced Ct ◽  
Contrast Enhanced ◽  
Enhanced Ct ◽  
Significant Difference ◽  
Adrenal Masses

Abstract Background The term adrenal incidentaloma (AI), by definition, is an adrenal mass that is unexpectedly detected through an imaging procedure performed for reasons unrelated to adrenal dysfunction or suspected dysfunction. Despite their frequent appearance, the challenge remains in recognizing and treating the small percentage of AI that poses a significant risk, either because of their hormonal activity or because of their malignant histology. The aim of this study is to study the role of MRI, specifically chemical shift imaging (CSI), against various MDCT scans (non-enhanced, enhanced, and delayed) in the characterization of incidentally discovered adrenal masses to offer a way for the patients to avoid unnecessary time and money-wasting imaging modalities used to reach a diagnosis of their incidentally discovered adrenal lesions. We examined a total number of 20 patients with total of 22 adrenal lesions. The mean age was 51.1 ± 15.27. Results In our study, we found that among CT parameters, APW and RPW showed the highest sensitivity and specificity for detection of lipid-rich adenomas. CSI has also proven to be the best MR technique. However, there is no statistically significant difference in the diagnostic capability of CSI versus the CT washout technique. Both modalities could be conducted, according to specific patient preferences and/or limitations, with comparable highly accurate outcomes. Conclusion This study demonstrates that a similar diagnostic outcome is obtained from contrast-enhanced CT (CECT) and MRI with CSI of adrenal lesions.

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