Abstract
Intertemporal aggregation results in a summarization of information and a natural delay in the release of information. We study a principal-agent model and show that intertemporal aggregation can be an optimal feature of a performance evaluation system. We then highlight subtleties associated with valuing additional information as the level of aggregation of existing information is varied.
Full Citation
European Accounting Review
vol.
13
,
(January 01, 2004):
643
-657
.