An incentive to shirk, privately held information, and managers' project evaluation decisions

Harrell, Adrian M.; Harrison, Paul

doi:10.1016/0361-3682(94)90024-8

Cited by 119 publications

(107 citation statements)

References 18 publications

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“…These findings were interpreted to be consistent with an agency theory view of escalation. Subsequent studies have yielded similar results (Harrell and Harrison 1994;Tuttle et al 1997). …”

Section: Agency Theorymentioning

confidence: 69%

Why Software Projects Escalate: An Empirical Analysis and Test of Four Theoretical Models

2000

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This research was made possible through a grant from the Information Systems Audit and Control Foundation and is based on a survey of Information Systems Audit and Control Association (ISACA) members. Some of the descriptive results from the ISACA survey were presented at the 1997 Hawaii International Conference on System Sciences and published in its proceedings (Keil and Mann 1997c). Preliminary results from the ISACA survey in the form of descriptive statistics were also published in the IS Audit & Control Journal (Keil and Mann 1997a, 1997b

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“…These findings were interpreted to be consistent with an agency theory view of escalation. Subsequent studies have yielded similar results (Harrell and Harrison 1994;Tuttle et al 1997). …”

Section: Agency Theorymentioning

confidence: 69%

Why Software Projects Escalate: An Empirical Analysis and Test of Four Theoretical Models

2000

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“…This phenomenon has been studied in many contexts since its introduction to the literature over 30 years ago (Staw 1976), including sports (Staw and Hoang 1995), information technology (Drummond 1996;Keil et al 1994), and management (Miller et al 1997). Accounting researchers have tended to focus on escalation of commitment in a capital investment setting (Schulz and Cheng 2002;Rutledge and Karim 1999;Chow et al 1997;Harrell and Harrison 1994;Kanodia et al 1989), and also on factors that mitigate escalation tendencies (Kadous and Sedor 2004;Cheng et al 2003;Ghosh 1997;Jeffrey 1992;Beeler 1988).…”

Section: Literature Review Escalation Of Commitmentmentioning

confidence: 99%

Real Options and Escalation of Commitment: A Behavioral Analysis of Capital Investment Decisions

Denison

2009

The Accounting Review

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This study uses experimental methods to expiore whether incorporating reai options into net present value analysis can reduce escalation of commitment, or the tendency of decision makers to continue to commit resources to a project after receiving negative feedback. This reduction in escalation behavior should occur because the incorporation of real options offers the user greater cognitive accessibility to the possibility of project abandonment. Findings indicate that users of real options exhibit less escalation of commitment than do users of net present value analysis alone. The main result demonstrates that the use of real options in capital budgeting can affect the behavior and decisions of the user even in an experimental setting that controls for the informational advantage of using real options.

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“…This is further encouraged with the presence of opportunity coupled with certain incentive (Harell, & Harrison, 1994;Wells, 2001), especially when the probability of being detected and caught, and the damaging consequences are low, and potential rewards is high (Millar, & Millar, 1997). In addition, when an organization tolerates metric manipulation, Jaworski and Young (1992) noted such an act of an employee will trigger the same intention among his peers for fear that his performance evaluation might suffer if he goes against them.…”

Section: Dysfunctional Behaviourmentioning

confidence: 99%

Ethical Antecedents of Dysfunctional Behaviour in Performance Measurement and Control System

Adnan

Jamil²,

Nor³

2012

ASS

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The importance of performance measurement and control system (PMCS) in enhancing the firm profitability and sustainability has certainly been admitted by many, but findings on its effectiveness have been inconclusive with certain dysfunctional behaviours (DB) like budgetary slack, information or measures manipulation, or gaming, have been reported. Hence, a lot has been debated about what actually lead to these DBs. However, the bulk of researches has only concentrated on the technical aspects towards the betterment of the system which is unfortunately not always true. Ironically, though ethics has captured vast attention and has been admitted as bearing great importance in influencing one's behaviour, it is a great surprise that very few empirical studies had linked ethics to DB in the context of PMCS. Hence this paper will try to propose how ethical antecedents will affect employees' propensity to engage in DB. Based on reviews of extant literatures, the article first elaborates the DB in the context of PMCS before proceeding to the ethical antecedents, grouped in personal and organizational ethics, believed to influence the occurrence of DB. Propositions on how these factors will influence DB will be discussed based on social learning theory which would lead to the proposed theoretical framework. Practical implications will also be discussed.

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An incentive to shirk, privately held information, and managers' project evaluation decisions

Cited by 119 publications

References 18 publications

Why Software Projects Escalate: An Empirical Analysis and Test of Four Theoretical Models

Why Software Projects Escalate: An Empirical Analysis and Test of Four Theoretical Models

Real Options and Escalation of Commitment: A Behavioral Analysis of Capital Investment Decisions

Ethical Antecedents of Dysfunctional Behaviour in Performance Measurement and Control System

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