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This paper synthesizes the extant research on the outcome effect in the accounting domain, focusing primarily on the context of performance evaluation. It reviews the current state of our knowledge about this phenomenon, including its underlying cognitive and motivational causes, the contexts in which the outcome effect is observed, the factors that influence its various manifestations, and ways in which undesirable outcome effects can be mitigated. It also considers various perspectives about the extent to which outcome effects represent undesirable judgmental bias, and whether this distinction is necessary to motivate research on this topic. The paper is intended to motivate and facilitate future research into the effects of outcome knowledge on judgment in the accounting context. Therefore, we also identify important unanswered questions and discuss opportunities for future research throughout the paper. These include additional consideration of instances in which the outcome effect is reflective of bias, how this bias can be effectively mitigated, ways in which outcome information influences judgment (regardless of whether this influence is considered normative), and how the underlying causes of the outcome effect operate singly and jointly to bring about the outcome effect. We also consider ways that future research can contribute to practice by determining how to encourage evaluators to retain and incorporate the relevant information conveyed by outcomes, while avoiding the inappropriate use of outcome information, and by enhancing external validity to increase the generalizability of experimental results to scenarios frequently encountered in practice.

Organizations regularly use budgets as benchmarks for performance, and budgets represent a key control feature for almost every organization (Brown and Solomon (1993)). Research has demonstrated that outcome effects are pervasive in performance evaluation processes, and that performance evaluators do not interpret situational information consistently. An experiment is conducted to examine the effects of situational information on managers’ performance and ability attributions under conditions of favorable and unfavorable financial outcomes. The findings indicate that when financial outcomes are unfavorable, outcome effects dominate the performance evaluation process, and situational information has little effect on performance evaluations. The results of cognitive load manipulations indicate that situational information is not ignored, but rather discounted when financial outcomes are favorable.

During the last several years, a stream of research has evolved that investigates the influence of outcome information on evaluation judgments in an auditor legal liability context. These studies have included judges and jurors and have utilized different cases and scenarios. Our objective in this paper is to review and discuss insights from this stream of research. This research consists of three phases. Phase 1 focuses on the robust manifestation of outcome effects in an audit legal liability context, Phase 2 examines the effectiveness of selected mitigation strategies in moderating outcome effects, and Phase 3 begins the process of developing a preliminary theoretical framework. We also discuss future research that could be done to better understand outcome effects and to test operational responses and proposed remedies.

This paper examines the relationship between human resource practices in 173 hospitals in the United Kingdom and four organizational outcome categories – clinical, financial, employee attitudes and perceptions, and patient attitudes and perceptions. The overarching proposition set forth and examined in this paper is that human resource management (HRM) practices and delivery of care practices have varied effects on each of these outcomes. More specifically, the authors set forth the proposition that specific practices will have positive effects on one outcome category while simultaneously having a negative effect on other performance outcomes, broadly defined.

The paper introduces a broader stakeholder framework for assessing the HR–performance relationship in the healthcare setting. This multi-dimensional framework incorporates the effects of human resource practices on customers (patients), management, and frontline staff and can also be applied to other sectors such as manufacturing. This approach acknowledges the potential for incompatibilities between stakeholder performance objectives. In the healthcare industry specifically, our framework broadens the notion of performance.

Overall, our results provide support for the proposition that different stakeholders will be affected differently by the use of managerial practices. We believe that the findings reported in this paper highlight the importance of examining multiple stakeholder outcomes associated with managerial practices and the need to identify the inherent trade-offs associated with their adoption.

This study examined the effect that venture creation action has on the outcomes of nascent entrepreneurship. A conceptual model was developed which proposes action as a fundamental mechanism in venture creation. Thus, action should rightly be considered as a means which transmits the effects of venture resource endowments on to venture creation outcomes. This conceptual model was empirically supported in a random sample of nascent ventures. Ventures with higher levels of human or social capital were found to be more active in venture creation. In turn, more active venture attempts were more likely to achieve improved venture creation outcomes. Further, human and social capital, on their own, exhibit little direct influence on the venture outcomes achieved. These findings confirm action's central place in the venture creation process.

One aspect of attracting new employees that has historically been ignored by recruitment researchers is salary negotiations. In this study, we used a hypothetical scenario design to depict salary negotiation experiences in which we varied the levels of salary offer, the behavior of a company and its representative, and the deadlines for receiving a signing bonus. MBA students served as study participants who read the scenarios and responded to questions about perceived organizational attractiveness and job acceptance decisions—two important recruitment outcomes. As hypothesized, our results indicated that salaries, a company's responsiveness to candidate questions, and a company representative's expression of derogatory comments all impact recruitment outcomes. However, exploding signing bonuses had no significant effects, calling into question the negative connotation practitioners have of exploding compensation schemes. Our justice framework revealed that many of the effects that we found for our manipulations on participants' judgments regarding our recruitment outcomes were mediated by perceptions of organizational justice. Finally, we found some evidence of the frustration effect, as procedures that were considered fair worsened rather than mitigated the negative effects of unfair outcomes on job acceptance decisions.

This paper aims to examine the direct and indirect effects of substitutes for leadership on performance outcomes.

A self‐report questionnaire was distributed to a sample of 177 Australian local council employees. The responses were analysed using ICLUST analysis and hierarchical multiple regression analysis.

The results indicated significant positive effects of some substitutes for leadership on performance outcomes. Furthermore, some substitutes for leadership moderated the effects of transactional leadership behaviours on performance outcomes, whereas another sub‐component of substitutes for leadership moderated the effects of social processes of leadership on performance outcomes. In addition, some substitutes for leadership partially mediated the relationship between transformational leadership and performance outcomes.

The cross‐sectional design of the study reduces the capacity to draw definitive causal inferences.

The current study supports the view that council leaders could have influenced the employees' attitudes, perceptions, and performance by indirectly shaping the environment in which the subordinates worked (i.e. shaping task and organisational characteristics). The study implies the need for leaders in the local councils to understand those substitutes for leadership that mediate the influence of transformational leadership (such as group and work design capacities) and how they can be managed to enhance employee performance outcomes.

This is one of the first Australian studies to comprehensively examine the influence of substitutes for leadership on performance outcomes.

This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s response to prices.

A scenario-based experiment is used (N = 200). To test the hypotheses, the authors run moderated mediation regression analyses with the help of the PROCESS macro.

Drawing on fairness heuristics theory, the authors hypothesize and find that relative to when paying with personal funds, when paying with company’s funds, the perceived price difference plays a less significant role, whereas the perceived social acceptability of the pricing practice underlying the price difference plays a more important role in shaping price fairness judgments and, via these judgments, buyer’s response to prices.

The findings generate advice for companies that serve both the business and personal segments (e.g. airlines and hotels). Buyers in the personal segment typically pay with their own money. To persuade these buyers that a price is fair, it is crucial to show that the price represents a good deal for them. Buyers in the business segment often pay with company’s fund. Companies have more flexibility in charging different prices, but they should make sure that the reasons for the price difference are socially acceptable.

This research shows how the relative role of price difference versus social acceptability in price fairness judgments varies as a function of source of funds and how an inconsistency between price difference and its economic impact affects price fairness judgments.

The purpose of this paper is to understand the roles that social capital and real-world learning may play in enhancing the effects of university education for sustainable development (ESD) on social sustainability.

A conceptual framework that identifies the plausible effects of university ESD on social sustainability along three outcome dimensions (think-act-leverage), broadening desirable program learning outcomes and proposing enabling roles for social capital and real-world learning, is substantiated and validated through qualitative insights from a focus group. The framework serves to structure a survey to alumni of a postgraduate program in sustainability (2011–2018). Hierarchical clustering analysis is used to identify differences in perceived, sustainability-related effects of the program on direct beneficiaries and their relationship with stakeholders in their communities.

Implementation of real-world learning in partnership with organizations in the community that actively involves alumni not only extends desirable effects beyond individual program learning outcomes and outside the academia but may also renew them over time.

University administrators should foster the creation of new social capital of students and alumni and their commitment with service learning and other credit-bearing opportunities as actionable enablers to enhance the social sustainability effects of university ESD.

The paper contributes to a dual theoretical and empirical void related to the effects of university ESD on the social dimension of sustainability through the proposal of a conceptual framework and quantitative assessment of the dynamic effects of university ESD at the local level.

Major demographic trends are affecting the work schedules of U.S. employees with likely consequences for health and quality-of-life outcomes. These trends include long work hours, at least for some groups of employees, and an increasing proportion of employees in the U.S. and other countries who are working nonstandard work schedules. This chapter contains a review of the empirical literature linking the number of hours worked and the distribution of those hours at the individual and couple level to a variety of outcomes, cross-sectionally and longitudinally. In addition, because the majority of U.S. workers live in dyads (Jacobs & Gerson (2004). The time divide: Work, family and gender inequality. Cambridge, MA: Harvard University Press), major attention is given to the impact of work hours on the employee's spouse as well as on the employee. It is also noted that the relationship between work hours and outcomes might be different among employed single women with children. Data are presented from two new studies conducted by my research team to fill some of the critical knowledge gaps. Finally, I suggest some directions for future research.