Article

The impact of reliance on incentive-based compensation schemes, information asymmetry and organisational commitment on managerial performance

DOI:10.1016/j.mar.2007.04.002
Source: OAI

ABSTRACT This study examines the effects of information asymmetry and organisational commitment on the relation between the extent of reliance on incentive-based compensation schemes and managerial performance. The responses of 109 managers, drawn from a cross-section of Australian manufacturing companies, to a questionnaire survey, were analysed by using a multiple regression technique. The results provide evidence of higher managerial performance for managers with low organisational commitment and a high reliance on incentive-based compensation schemes in high information asymmetry situations. On the other hand, the results show that the performance level of managers with high organisational commitment is unaffected regardless of the degree of information asymmetry and the extent of reliance on incentive-based compensation schemes.

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Keywords

Australian manufacturing companies
 
cross-section
 
higher managerial performance
 
incentive-based compensation schemes
 
information asymmetry
 
information asymmetry situations
 
low organisational commitment
 
managerial performance
 
multiple regression technique
 
organisational commitment
 
questionnaire survey
 
reliance
 
responses
 
study examines