Starjournal Quotation Grabner, Isabella, Künneke, Judith, Moers, Frank. 2020. How Calibration Committees Can Mitigate Performance Evaluation Bias: An Analysis of Implicit Incentives. Accounting Review. 95 (6), 213-233.


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Abstract

While prior research on performance evaluation bias has mainly focused on the determinants and consequences of rating errors, we investigate how a firm can provide implicit incentives to supervisors to mitigate these errors via its calibration committee. We empirically examine the extent to which a calibration committee incorporates supervisors' evaluation behavior with respect to their subordinates in the performance evaluation outcomes, i.e., performance ratings and promotion decisions, for these supervisors. In our study, we distinguish between lack of skills and opportunism as two important facets of evaluation behavior, which we expect the calibration committee to address differently. Using panel data of a professional service firm, we show that supervisors' opportunistic behavior to strategically inflate subordinates' performance ratings is disciplined through a decrease in the supervisors' own performance rating, while the supervisors' skills to provide less compressed and thus more informative performance ratings is rewarded through a higher likelihood of promotion.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Accounting Review
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title How Calibration Committees Can Mitigate Performance Evaluation Bias: An Analysis of Implicit Incentives
Volume 95
Number 6
Year 2020
Page from 213
Page to 233
Reviewed? Y
DOI https://doi.org/10.2308/tar-2016-0662
Open Access N

Associations

People
Grabner, Isabella (Details)
External
Künneke, Judith (Maastricht University, Netherlands)
Moers, Frank (Maastricht University, Netherlands)
Organization
Institute for Strategy and Managerial Accounting IN (Details)
Institute for Strategy and Managerial Accounting (Grabner) (Details)
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