JOURNAL ARTICLE

The Effects of In-Group Identity and Clarity of the Bonus Determination Criteria on Supervisors' Discretionary Bonus Adjustments: Field Evidence from China.

  • Published In: Journal of International Accounting Research, 2023, v. 22, n. 2. P. 103 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Ho, Joanna L. Y.; Lu, Cody; Wu, Anne 3 of 3

Abstract

This study examines the influence of in-group identity between supervisors and subordinates and the clarity of the bonus determination criteria on supervisors' discretionary adjustments of subordinates' bonus compensation through the lens of social identity theory. Using field data from a multinational manufacturing company's subsidiary in China, we find that in-group sales agents receive higher bonus awards and that this effect is more pronounced when there is high clarity of the bonus determination criteria. Additional analysis shows that these effects hold for higher-tenured sales agents and in regions characterized by lower sales agent turnover. Finally, we find that higher bonus awards are positively (negatively) associated with in-group sales agents' future performance when there is low (high) clarity of the bonus determination criteria. Our findings hold potential implications for management practices in corporations operating in countries that have strong relationship-based cultures. Data Availability: Data used in this study are provided by a proprietary source. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Journal of International Accounting Research. 2023/07, Vol. 22, Issue 2, p103
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2023
  • ISSN:1542-6297
  • DOI:10.2308/JIAR-2022-013
  • Accession Number:165115386
  • Copyright Statement:Copyright of Journal of International Accounting Research is the property of American Accounting Association and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.