Professors Recognized for Research on Performance-Based Incentives

CGMA-sponsored management accounting award given at AAA Management Accounting Section’s Midyear meeting

NEW YORK (January 13, 2020)
— The Association of International Certified Professional Accountants (the Association) and the Management Accounting Section of the American Accounting Association (AAA), on Friday recognized three professors for their research on the impact of performance-based incentives on the creative process.

Steven J. Kachelmeier of the University of Texas at Austin and Laura W. Wang and Michael G. Williamson of the University of Illinois at Urbana–Champaign, were named recipients of the 2020 Greatest Potential Impact on Management Accounting Practice Award

The award is sponsored by the Association, the global accounting organization formed by members of the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA). The award is given on behalf of the Association’s Chartered Global Management Accountant (CGMA) designation, which distinguishes a unique group of 150,000 management accountants worldwide who have reached the highest benchmark of quality and competency.

The professors’ paper, Incentivizing the Creative Process: From Initial Quantity to Eventual Creativity, explores whether performance-contingent incentives facilitate the creative process by enhancing the initial preparation that precedes creative incubation. The study found a correlation between quantity-incentivized participants’ and their creativity advantage.

The award was presented at the award at the 2019 AAA Management Accounting Section’s Midyear meeting in Houston, Texas. Ann Gabriel, associate professor of accountancy at Ohio University, commented:

“The professors’ research highlights the impact that incentives can play in improving the creative problem-solving process,” said Gabriel.  “By applying this knowledge in business settings, management accountants can contribute to the process of creative idea generation that is critical to the success of business in today’s competitive environment.”

The Greatest Potential Impact on Management Accounting Practice Award recognizes academic research considered to most likely have a significant impact on management accounting. Eligible papers must have been published within the previous five years and submitted by the authors or nominated by peers. The award is accompanied by a $2000 stipend.

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Colette Sharbaugh