Journal article

Authors list: Knauer, Thorsten; Sommer, Friedrich; Wöhrmann, Arnt

Publication year: 2017

Pages: 681-702

Journal: European Accounting Review

Volume number: 26

Issue number: 4

ISSN: 0963-8180

eISSN: 1468-4497

DOI Link: https://doi.org/10.1080/09638180.2016.1175957

Publisher: Taylor and Francis Group

Abstract: 
This study investigates the effects of the psychological mechanisms activated by different proportions of tournament winners on effort. Using a real-effort experiment that allows the evolution of social comparison, which is central to our theory, we show that firms can increase employee effort (and performance) by increasing the proportion of winners. Based on a causal model, we generate evidence for our theory that this effect is driven by relative performance concerns and bonus concerns, both of which depend on the proportion of tournament winners. In addition, we find that, over time, the change in effort is more negative the lower the proportion of winners. This effect is driven by the different behaviors of winners and losers in a previous tournament.

Harvard Citation style: Knauer, T., Sommer, F. and Wöhrmann, A. (2017) Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms, European Accounting Review, 26(4), pp. 681-702. https://doi.org/10.1080/09638180.2016.1175957

APA Citation style: Knauer, T., Sommer, F., & Wöhrmann, A. (2017). Tournament Winner Proportion and its Effect on Effort: An Investigation of the Underlying Psychological Mechanisms. European Accounting Review. 26(4), 681-702. https://doi.org/10.1080/09638180.2016.1175957