On the Association between Current Period Budget Target Achievability and the Properties of Nonfinancial Measures

doi:10.2308/jmar-51536

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	On the Association between Current Period Budget Target Achievability and the Properties of Nonfinancial Measures
	Huang, Jizhang 1; Balakrishnan, Ramji 2; Pan, Fei 1
刊名	JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH
	2017-06
卷号	29 期号:2 页码:47-62
关键词	nonfinancial measures budget achievability survey
ISSN号	1049-2127
DOI	10.2308/jmar-51536
英文摘要	Firms usually employ nonfinancial performance metrics (NFPMs) to measure progress toward long-term outcomes. They also often evaluate current performance by comparing outcomes on financial measures with budgeted targets. Thus, they can motivate actions that sacrifice current profit for favorable future outcomes directly by increasing the rewards for such actions and indirectly by reducing their opportunity cost. Combining these arguments, we examine the relation between the properties (congruity and measurability) of NFPMs used in incentive contracting and the achievability of the current period budget target, where achievability is the probability of obtaining the incentive payment tied to current period performance. Survey data from 179 divisions in Chinese firms support our prediction of a positive (negative) association between the congruity (measurability) of NFPMs and budget achievability. We also document an expected positive interaction effect between congruity and measurability.
WOS研究方向	Business & Economics
语种	英语
出版者	AMER ACCOUNTING ASSOC
WOS记录号	WOS:000423912900004
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/957]
专题	上海财经大学
通讯作者	Huang, Jizhang
作者单位	1.Shanghai Univ Finance & Econ, Shanghai, Peoples R China; 2.Univ Iowa, Iowa City, IA 52242 USA
推荐引用方式 GB/T 7714	Huang, Jizhang,Balakrishnan, Ramji,Pan, Fei. On the Association between Current Period Budget Target Achievability and the Properties of Nonfinancial Measures[J]. JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH,2017,29(2):47-62.
APA	Huang, Jizhang,Balakrishnan, Ramji,&Pan, Fei.(2017).On the Association between Current Period Budget Target Achievability and the Properties of Nonfinancial Measures.JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH,29(2),47-62.
MLA	Huang, Jizhang,et al."On the Association between Current Period Budget Target Achievability and the Properties of Nonfinancial Measures".JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH 29.2(2017):47-62.