The Role of Calibration Committees in Subjective Performance Evaluation Systems

2019 ◽  
Vol 65 (4) ◽  
pp. 1562-1585 ◽  
Author(s):  
B. William Demeré ◽  
Karen L. Sedatole ◽  
Alexander Woods
Keyword(s):  
Performance Evaluation ◽  
Evaluation Systems ◽  
Subjective Performance Evaluation

The Effects of Firm-Provided Measure Weightings on Evaluators' Incorporation of Non-Contractible Information

2014 ◽  
Vol 27 (1) ◽  
pp. 47-62 ◽  
Author(s):  
James H. Long ◽  
Lasse Mertins ◽  
Brian Vansant
Keyword(s):  
Performance Evaluation ◽  
Relative Weight ◽  
Evaluation Systems ◽  
Multiple Measures ◽  
Subordinate Performance ◽  
Subjective Performance Evaluation ◽  
Overall Performance

ABSTRACT Subjective performance evaluation systems often prescribe for evaluators to use multiple measures to assess overall subordinate performance. Firms can choose to explicitly provide suggested weights to “balance” the relative weight evaluators place on each measure. However, we theorize that doing so may also affect evaluators' perceptions regarding the extent to which the firm intends for them to exercise subjectivity in their evaluations. We conducted an experiment in which evaluators use four measures to subjectively evaluate a subordinate's overall performance. Evaluators were also provided with relevant non-contractible information, although evaluators were not explicitly required to consider this information. We find that the provision of weights reduces the extent to which evaluators employ subjectivity to incorporate non-contractible information, which is manifested in larger outcome effects. Our results suggest firms should carefully consider what the structure and characteristics of their performance evaluation systems communicate to evaluators regarding the role of subjectivity.

The moderating role of decision mode in subjective performance evaluation

2018 ◽  
Vol 41 ◽  
pp. 1-10 ◽  
Author(s):  
Dennis D. Fehrenbacher ◽  
Axel K.-D. Schulz ◽  
Kristian Rotaru
Keyword(s):  
Performance Evaluation ◽  
Subjective Performance Evaluation ◽  
Decision Mode ◽  
Moderating Role

A comparison of online and traditional performance evaluation systems

2008 ◽  
Author(s):  
Stephanie Payne ◽  
Margaret Horner ◽  
Wendy Boswell ◽  
Amber Wolf ◽  
Stine-Cheyne Kelleen
Keyword(s):  
Performance Evaluation ◽  
Evaluation Systems ◽  
Traditional Performance

Comprehensive Income: which potential effects on firms' performance evaluation and users' decision process?

2016 ◽  
pp. 55-94
Author(s):  
Pier Luigi Marchini ◽  
Carlotta D'Este
Keyword(s):  
Performance Evaluation ◽  
Decision Process ◽  
Financial Analysts ◽  
Listed Companies ◽  
Financial Statement ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Gains And Losses ◽  
The Impact

The reporting of comprehensive income is becoming increasingly important. After the introduction of Other Comprehensive Income (OCI) reporting, as required by the 2007 IAS 1-revised, the IASB is currently seeking inputs from investors on the usefulness of unrealized gains and losses and on the role of comprehensive income. This circumstance is of particular relevance in code law countries, as local pre-IFRS accounting models influence financial statement preparers and users. This study aims at investigating the role played by unrealized gains and losses reporting on users' decision process, by examining the impact of OCI on the Italian listed companies RoE ratio and by surveying a sample of financial analysts, also content analysing their formal reports. The results show that the reporting of comprehensive income does not affect the financial statement users' decision process, although it statistically affects Italian listed entities' performance.

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