Reply to: Dynamic incentives and responsibility accounting: A comment

Raffi Indjejikian, Dhananjay Nanda

Research output: Contribution to journalArticle

4 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)437-441
Number of pages5
JournalJournal of Accounting and Economics
Volume35
Issue number3
DOIs
StatePublished - Aug 2003
Externally publishedYes

Fingerprint

Dynamic incentives
Ratchet effect
Responsibility
Limited commitment
Inefficiency

Keywords

  • Contracting
  • Performance measurement
  • Ratchet effect

ASJC Scopus subject areas

  • Accounting
  • Economics and Econometrics
  • Finance

Cite this

Reply to : Dynamic incentives and responsibility accounting: A comment. / Indjejikian, Raffi; Nanda, Dhananjay.

In: Journal of Accounting and Economics, Vol. 35, No. 3, 08.2003, p. 437-441.

Research output: Contribution to journalArticle

@article{f961cd9fbb234dab8e0674de6fb6c747,
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.",
keywords = "Contracting, Performance measurement, Ratchet effect",
author = "Raffi Indjejikian and Dhananjay Nanda",
year = "2003",
month = "8",
doi = "10.1016/S0165-4101(03)00041-7",
language = "English (US)",
volume = "35",
pages = "437--441",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - Reply to

T2 - Dynamic incentives and responsibility accounting: A comment

AU - Indjejikian, Raffi

AU - Nanda, Dhananjay

PY - 2003/8

Y1 - 2003/8

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.

KW - Contracting

KW - Performance measurement

KW - Ratchet effect

UR - http://www.scopus.com/inward/record.url?scp=0042429175&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0042429175&partnerID=8YFLogxK

U2 - 10.1016/S0165-4101(03)00041-7

DO - 10.1016/S0165-4101(03)00041-7

M3 - Article

AN - SCOPUS:0042429175

VL - 35

SP - 437

EP - 441

JO - Journal of Accounting and Economics

JF - Journal of Accounting and Economics

SN - 0165-4101

IS - 3

ER -