Abstracts » Business

An experiment testing the behavioral equivalence of strategically equivalent employment contracts

Article Abstract:

The strategic communication of information in companies' managerial performance review systems is examined. Specifically, the behavioral equivalence of non-communication- and communication-based contracts which are strategically equivalent under an agency model is evaluated. Results reveal that agency model equivalent non-communication- and communication-based contracts produce behavioral equivalence from agents who receive small incentives to communicate in an opportunistic manner, thus supporting the agency formulation of the communication process. Results also show that there is little advantage to developing a managerial accounting system which requires agents to communicate directly by word rather than indirectly by action choice.

Contracts, Truthfulness and falsehood

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Discussion of determinants of auditor expertise

Article Abstract:

Sarah E. Bonner and Barry L. Lewis (1990) investigated the determining factors contributing to auditors' expertise by researching the different types of skill and knowledge of auditors. Their research led them to believe that variances in performance among auditors primarily was the result of differences in skill and knowledge rather than experience. The research results indicate that experience should not be used solely as a measure of auditors' expertise, and traditional definitions of expertise based on experience are lacking. Bonner and Lewis' research would be more complete if they had analyzed differences across tasks for differences in performance.

Auditing, Auditors, Bonner, Sarah E., Lewis, Barry L.

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