The Effect of Performance Measure Comparability and Discriminability on Measure Discontinuance
研究了绩效指标的可比性和区分度如何影响其被废止的可能性，发现可比性和区分度越高的指标越不容易被废止，基于韩国15家国企1985-2021年的数据。
This study investigates the effect of performance measure characteristics―comparability and discriminability―on performance measure discontinuance. Relative performance evaluation using comparable information offers a means of filtering out common shocks and capturing the subordinates’ own performance relative to that of peers. In addition, a measure’s ability to discriminate good from poor performance is important in the incentive contract. We show that since subordinates have an incentive to put effort into the comparable and discriminable performance measures, the superior is more likely to retain performance measures with greater comparability and discriminability. Using a large sample of performance evaluation data from 15 state-owned enterprises in South Korea over the period 1985–2021, we find that comparable and discriminable performance measures are less likely to be discontinued. Our study contributes to the performance evaluation literature by identifying two measure characteristics that influence the evolution of performance measures.