Notice of Retraction: A Survey study on the use of non-financial performance measures in the scheme of divisional managers' incentive contracts

Abstract

This paper discusses factors in determining the weights of performance measures in divisional managers' contract design through questionnaire survey method. The results shows that the higher the degree between divisional strategy synergy, the higher the weight of non-financial performance measures in divisional managers' incentive contracts, and the more private information the divisional manager has about the divisions and the bigger the divisional managers' action on divisional short-term financial performance, the lower the weight of non-financial performance measures in divisional managers' incentive contracts. This paper not only provides the corresponding empirical evidence on the existing theoretical research about performance measures, but also provides certain enlightenment for division manager's contract design.