Intertemporal Choices: The Role of Feedback Frequency and Reward Timing

Andson Braga de Aguiar, José Carlos Tiomatsu Oyadomari, Cláudio Soerger Zaro

Abstract


Purpose:

We examine whether managers allocate longer-term effort when they receive quarterly than either up to a month or longer than quarterly feedback. We also examine whether reward timing moderates the relationship between feedback frequency and intertemporal choices.

 

Design/methodology/approach:

We collect survey data from 78 middle-level managers working at a Brazilian company.

 

Findings:

The results indicate that managers place more weight on longer-term tasks when they receive quarterly feedback. Our results also indicate that reward timing moderates the relationship between feedback frequency and intertemporal choices.

 

Originality/value:

The contribution of this study is twofold. First, we provide empirical evidence showing the effect of feedback frequency in a setting in which feedback is not mandatory, is provided for internal purposes, and there is no capital market pressure. Second, we disentangle these two components and offer empirical evidence on the relation between feedback frequency and intertemporal choices and on the moderate role of reward timing in this relationship.


Keywords


Decision making; Feedback frequency; Reward timing; Intertemporal choice



DOI: https://doi.org/10.7819/rbgn.v21i2.3974

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