alt Hacker NewsThe paper:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6787638
Unclear if it's been peer reviewed. The abstract looks fairly convincing. But it is argued against by the majority of research on this topic.
Replies
nitwit005 • today at 6:56 AM
The first handful of sentences from the abstract were a rather convincing case against the paper to me.
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The one glaring omission the jumps out to me is Holmström's theorem like effects of incentives.
There has been a huge shift towards metrics, to the point that managers are often forced to or at least commonly believe they are forced to game those metrics.
It is challenging to take strategic risks when you have to focus on metrics which cannot measure let alone value those choices.