In contrast, partners placed in the same setting show no evidence of
encouraging underreporting.
Thus, our results suggest that managers’ tacit encouragement
of underreporting is contrary to what the ‘‘principals’’ of the firm (i.e., partners) appear to
want. Further, while firms may have reduced their emphasis on formal, explicit incentives
to underreport, it appears likely that implicit manager incentives persist.
In contrast, partners placed in the same setting show no evidence ofencouraging underreporting. Thus, our results suggest that managers’ tacit encouragementof underreporting is contrary to what the ‘‘principals’’ of the firm (i.e., partners) appear towant. Further, while firms may have reduced their emphasis on formal, explicit incentivesto underreport, it appears likely that implicit manager incentives persist.
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