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Effects of Relative Performance Information in Remote Work Arrangements

Sat, October 15, 10:30am to 12:00pm, TBA

Abstract

Firms use Relative Performance Information (RPI) to improve employee performance; however, differences in employees’ remote work environments call into question whether RPI improves performance in remote work arrangements. We examine whether RPI improves performance in remote work arrangements using a field experiment in introductory accounting courses taught during the Covid-19 pandemic by manipulating RPI provision across sections. We find RPI improves performance in a remote work setting, as students receiving RPI achieve higher exam scores and increase their exam scores to a greater extent than students who do not receive RPI. We also find that lower performers and those closest to the meaningful thresholds improve performance more than higher performers in response to RPI. These results inform practice on the expected benefits of implementing a relative performance information feedback system in remote work arrangements.

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