Job Market Paper
Practitioners and academics have debated whether greater managerial data usage improves decision-making and performance, especially as data usage can worsen agency conflicts when the data are also used to evaluate managers’ performance. I address this debate by investigating the rate at which retail frontline managers access different types of detailed data underlying top-level key performance indicators (“drilldown data”). I find results consistent with frontline managers accessing drilldown data to support their performance on related operational decisions and performance targets. Additionally, I survey frontline managers’ superiors regarding their focus on key performance indicators to evaluate frontline managers. I find that superiors’ focus moderates the association between frontline managers’ drilldown accesses and performance; however, the effect’s direction depends on the type of data and how frontline managers and their superiors use it. My study highlights granular data’s value for managerial decision-making and the interplay between information’s decision support and performance evaluation purposes.
Links: Video Summary
With Carolyn Deller and Shawn Kim.
Using broad-sample CDP data, we provide novel evidence on the sources of variation in firms’ use and design of emissions targets and internal carbon pricing (ICP), two theoretically motivated internal mechanisms for firms to reduce their emissions. We find that a rich set of variables capturing climate-related risk exposures explains the highest proportion of variation in emissions target and ICP usage. Moreover, these risk exposures influence the use and design of targets and ICP in several intuitive ways. Our results also indicate that firms’ emissions target and ICP choices are influenced by external pressure and the importance of other risks, as well as board-level climate preferences. Lastly, we find that emissions targets and ICP are complements, with ICP use most pronounced when firms’ targets imply a strong commitment to reducing emissions. Our findings suggest that many (but not all) firms’ emissions targets and ICP choices are intentional rather than symbolic.
Links: SSRN
With Pablo Casas-Arce and Asís Martínez-Jerez.
Using a field experiment at a large retail chain, we provide evidence that managers' leadership styles moderate the effectiveness of different types of incentives. Store managers using the servant leadership style are more able to leverage non-fungible team incentives, such as a store outing, than non-servant leader managers.
Review of Accounting Studies 30 (2): 1099-1136
With Pablo Casas-Arce and Asís Martínez-Jerez.
We study the motivational effects of top managers' visits to front-line employees through a field experiment. Our results indicate that managing by walking around can provide workers positive motivation, separate from the monitoring and learning effects of managerial field visits previously identified in the literature.
Links: SSRN | Publisher | Video Summary
Media Coverage: Forbes