Prof. Artz and co-authors from Switzerland and the USA, have recently published their new research article "The Effect of Past Performance and Task Type on Managers' Target Setting Decisions: An Experimental Investigation" in the The Accounting Review. Being an A+ journal, The Accounting Review is considered to be one of the top three journals in our field worldwide.

The authors investigate how performance-to-target (exceeding vs. missing prior target) and task type (ability-driven vs. effort-driven) affect managers’ target setting decisions in a setting where a manager sets targets for multiple employees. They predict and find stronger target adjustments when prior targets are exceeded than when they are missed, especially when tasks are ability-driven. They also predict and find targets are differentiated more between employees within a firm when tasks are ability-driven rather than effort-driven, but this effect is attenuated when prior targets are missed.

The full abstract can be accessed here The Effect of Past Performance and Task Type on Managers' Target Setting Decisions