Using Fixed Wages for Management Control: An Intra-firm Test of the Effect of Relative Compensation on Performance

TY - JOUR

T1 - Using Fixed Wages for Management Control: An Intra-firm Test of the Effect of Relative Compensation on Performance

AU - Hesford, James W

AU - Mangin, Nicholas

AU - Pizzini, Mina

N1 - Efficiency wage theory predicts employers can elicit better employee performance ex post by paying higher fixed compensation ex ante, relative to the market wage (Yellen 1984). Relative compensation may thereby constitute an alternative control mechanism when performance-based compensation is difficult to implement. Using proprietary data from 436 individually-managed hotels in a U.S.

PY - 2019/12/18

Y1 - 2019/12/18

UR - https://aaajournals.org/doi/abs/10.2308/jmar-18-070

U2 - 10.2308/JMAR-18-070

DO - 10.2308/JMAR-18-070

M3 - Article

JO - Journal of Management Accounting Research

JF - Journal of Management Accounting Research

ER -