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| Author: | Ray, K. |
| Title: | The retention effect of withholding performance information |
| Journal: | Accounting Review
2007 : MAR, VOL. 82:2, p. 389-425 |
| Index terms: | performance measurement information employees workers companies strategy |
| Language: | eng |
| Abstract: | This paper argues that firms strategically withhold performance information to retain workers. Especially, if the worker enjoys high outside options and is tempted to quit, then the firm chooses not to reveal his performance information to keep him on the job. The firm's equilibrium strategy is to fire if performance is sufficiently low, reveal information if performance is sufficiently high, and withhold information otherwise. |
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