Do white-collar employee incentives improve firm profitability?

Ikäheimo, Seppo; Kallunki, Juha-Pekka; Moilanen, Sinikka; Schiehll, Eduardo (2018-03-31)
 
Avaa tiedosto
Lataukset: 

URL:
https://doi.org/10.2308/jmar-51902

Ikäheimo, Seppo
Kallunki, Juha-Pekka
Moilanen, Sinikka
Schiehll, Eduardo
American Accounting Association
31.03.2018

Ikäheimo, S., Kallunki, J.-P., Moilanen, S., & Schiehll, E. (2017). Do White-Collar Employee Incentives Improve Firm Profitability? Journal of Management Accounting Research, 30(3), 95–115. https://doi.org/10.2308/jmar-51902

https://rightsstatements.org/vocab/InC/1.0/
© 2018 American Accounting Association. The final authenticated version is available online at https://doi.org/10.2308/jmar-51902.
https://rightsstatements.org/vocab/InC/1.0/
doi:https://doi.org/10.2308/jmar-51902
Näytä kaikki kuvailutiedot
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021090144965
Tiivistelmä

Abstract

We use proprietary archival compensation panel data from Finnish white-collar employees (WCEs) over the period of 2002 to 2011 in order to examine the relationship between performance-based incentives for WCEs and the future profitability of the firm as well as to determine whether this association is moderated by task complexity. While many studies examine the determinants and performance effects of CEO compensation, virtually no evidence has been presented to indicate that explicit financial incentives for WCEs improve the profitability of the firm. Our empirical results show that performance-based incentives for WCEs are significantly positively related to the future return-on-assets, return-on-equity, and profit margin ratios of the firm. We also find that this effect comes from the performance-based incentives for low-level WCEs, corroborating the importance of implementing performance-based incentives also to low-task complexity jobs.

Kokoelmat