EC 11

Question 1

Reporting of Information – Casas-Arce et al. (2017, JAR)

Answer 1

• Detailed information leads to improvements in performance but only when it is provided infrequently.
• People overreact to negative information when feedback is provided too frequently.
• Effect of variation in information detail and frequency quickly disappears
• Important implications for the design of feedback and information systems and an important role for the controller to tailor Big Data information provision

Question 2

Reporting of Information – Anderson & Kimball (2019, MS)*

Answer 2

• Accounting information has a decision-facilitating role and a decision-influencing role
• There are several reasons why PMS will not generate the expected results
• In this setting, using the PMS more leads to better student performance and this effect is not driven by better teachers using the PMS more
• Just providing more information works!

Question 3

Reporting of Information – Arshad & Dierynck (2022, WP)

Answer 3

• Most employees suffer from a task selection bias, implying that they prioritize shorter tasks over longer tasks
• Real-time feedback systems make the task selection bias worse
• Adding recordkeeping to the real-time feedback systems helps but induces employees to ask more feedback for easy tasks
• Controllers should be very careful in moving towards real-time feedback systems! Please note that most employees enjoy having real-time feedback as they are often unaware of the negative
  performance effects