Accounting Systems, Participation in Budgeting, and Performance Evaluation.

Key Points

• This research explores how accounting signals relate to employee evaluations and participation in budgeting.
• Explores use of accounting numbers in employee evaluations
• Analyzes links between accounting and expected performance
• Examines principal-agent analysis
• Discusses zero value of employee participation in budgeting process.
• Identifies potential impacts of accounting signals on performance evaluation
• Suggests little to no value of participation in some budgeting scenarios.