This article describes some “puzzles” with potentially important practical implications for the performance measurement and incentive compensation area of study. Lack of key bits of knowledge cause these puzzles. The goal of providing this list of puzzles is to provoke thought about these issues and to stimulate research.
BayerC.BurhopC.2009. “Corporate Governance and Incentive Contracts: Historical Evidence from a Legal Reform.”Explorations in Economic History46: 464–481.
2.
BiddleG. C.BowenR. M.WallaceJ. S.1997. “Does EVA Beat Earnings? Evidence on Associations with Stock Returns and Firm Values.”Journal of Accounting and Economics (24): 301–336.
3.
EastonP. D.HarrisT. S.OhlsonJ. A.1992. “Aggregate Accounting Earnings Can Explain Most of Security Returns: The Case of Long Return Intervals.”Journal of Accounting and Economics15: 119–142.
4.
EuskeK. J.LebasM. J.McNairC. J.1993. “Performance Management in an International Setting.”Management Accounting Research4 (December): 275–299.
5.
HopeJ.FraserR.2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap.Boston: Harvard Business School Press.
6.
IttnerC. D.LarckerD. F.2001. “Assessing Empirical Research in Managerial Accounting: A Value-Based Management Perspective.”Journal of Accounting and Economics32 (December): 349–410.
7.
JansenP.MerchantK. A.Van der StedeW. A.2009. “National Differences in Performance-Dependent Compensation Practices: The Differing Roles of Financial Performance Measurement in the United States and The Netherlands.”Accounting, Organizations and Society34: 58–84.
8.
JensenM. C.MurphyK. J.1990. Performance Pay and Top-Management IncentivesJournal of Political Economy98 (April): 225–264.
9.
MatejkaM.2009. CFO Compensation Survey: Incentives and Target-Setting in Times of Crises. Unpublished research report provided to survey respondents, Ross School of Business, University of Michigan.
10.
MerchantK. A.ManzoniJ.-F.1989. “The Achievability of Budget Targets in Profit Centers: A Field Study.”The Accounting Review (July): 539–558.
11.
MerchantK. A.SandinoT.2009. “Four Options for Measuring Value Creation.”Journal of Accountancy208, no. 2 (August): 34–37.
12.
NortonD. P.2000. “BEWARE: The Unbalanced Scorecard.” In Balanced Scorecard Report.Boston: Harvard Business School Press.
13.
RappaportA.1981. “Selecting Strategies that Create Shareholder Value.”Harvard Business Review (May-June): 139–149.
14.
VincentL.1999. “The Information Content of Funds from Operations (FFO) for Real Estate Investment Trusts (REITs).”Journal of Accounting and Economics26: 69–104.