Reply to: Dynamic incentives and responsibility accounting: A comment

Raffi Indjejikian; Dhananjay Nanda

doi:10.1016/S0165-4101(03)00041-7

Reply to: Dynamic incentives and responsibility accounting: A comment

Raffi Indjejikian, Dhananjay Nanda

Research output: Contribution to journal › Comment/debate › peer-review

4 Scopus citations

Abstract

Christensen et al. (Dynamic incentives and responsibility accounting: a comment, J. Account. Econ. 35 (2003) 423) examine Indjejikian and Nanda (J. Account. Econ. 27 (1999) 177) and suggest that our characterization of the inefficiency arising from limited commitment as a "ratchet effect" phenomenon is misplaced. In this reply, we describe the ratchet effect as commonly understood in the literature, clarify the role of contractual commitments in our analysis, and then illustrate why both the substance and interpretation of our original results continue to be appropriate.

Original language	English (US)
Pages (from-to)	437-441
Number of pages	5
Journal	Journal of Accounting and Economics
Volume	35
Issue number	3
DOIs	https://doi.org/10.1016/S0165-4101(03)00041-7
State	Published - Aug 2003
Externally published	Yes

Keywords

Contracting
Performance measurement
Ratchet effect

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1016/S0165-4101(03)00041-7

Cite this

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title = "Reply to: Dynamic incentives and responsibility accounting: A comment",

abstract = "Christensen et al. (Dynamic incentives and responsibility accounting: a comment, J. Account. Econ. 35 (2003) 423) examine Indjejikian and Nanda (J. Account. Econ. 27 (1999) 177) and suggest that our characterization of the inefficiency arising from limited commitment as a {"}ratchet effect{"} phenomenon is misplaced. In this reply, we describe the ratchet effect as commonly understood in the literature, clarify the role of contractual commitments in our analysis, and then illustrate why both the substance and interpretation of our original results continue to be appropriate.",

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N2 - Christensen et al. (Dynamic incentives and responsibility accounting: a comment, J. Account. Econ. 35 (2003) 423) examine Indjejikian and Nanda (J. Account. Econ. 27 (1999) 177) and suggest that our characterization of the inefficiency arising from limited commitment as a "ratchet effect" phenomenon is misplaced. In this reply, we describe the ratchet effect as commonly understood in the literature, clarify the role of contractual commitments in our analysis, and then illustrate why both the substance and interpretation of our original results continue to be appropriate.

AB - Christensen et al. (Dynamic incentives and responsibility accounting: a comment, J. Account. Econ. 35 (2003) 423) examine Indjejikian and Nanda (J. Account. Econ. 27 (1999) 177) and suggest that our characterization of the inefficiency arising from limited commitment as a "ratchet effect" phenomenon is misplaced. In this reply, we describe the ratchet effect as commonly understood in the literature, clarify the role of contractual commitments in our analysis, and then illustrate why both the substance and interpretation of our original results continue to be appropriate.

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KW - Performance measurement

KW - Ratchet effect

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Reply to: Dynamic incentives and responsibility accounting: A comment

Abstract

Keywords

ASJC Scopus subject areas

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