Construct · 1 fields · 1 citations

informativeness principle: a standalone construct

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Management accounting

the result that an optimal incentive contract should include any signal that adds information about the agent's unobservable effort.

In management accounting, informativeness principle refers to the result that an optimal incentive contract should include any signal that adds information about the agent's unobservable effort. This meaning comes from Holmstrom (1979) in The Bell Journal of Economics.[1]

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Nearby constructs

incentive4 fields · 5 citationsjingle · one word, four constructs moral hazard4 names · 5 citationsjangle · one idea, four disciplines alignment6 fields · 12 citationsjingle · one name, six constructs

References

Holmstrom, B. (1979). Moral Hazard and Observability. The Bell Journal of Economics, 10(1), 74. https://doi.org/10.2307/3003320

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