Download the full-sized PDF of Sufficient Aggregation of Performance MeasuresDownload the full-sized PDF



Permanent link (DOI):


Export to: EndNote  |  Zotero  |  Mendeley


This file is in the following communities:

Graduate Studies and Research, Faculty of


This file is in the following collections:

Theses and Dissertations

Sufficient Aggregation of Performance Measures Open Access


Other title
multiple tasks
relative incentive rate
performance measure
allocation of effort
statistical sufficiency
multiple periods
economic sufficiency
Type of item
Degree grantor
University of Alberta
Author or creator
Yoo, Junwook
Supervisor and department
Sabac, Florin (Accounting)
Examining committee member and department
Smith, Todd (Economics)
Schneider, Thomas (Accounting)
Sabac, Florin (Accounting)
Daniel, Terry (Operations Management)
Tian, Jie (Joyce) (Accounting)
Faculty of Business

Date accepted
Graduation date
Doctor of Philosophy
Degree level
Aggregating performance measures considerably reduces the complexity of a performance evaluation system. This dissertation analyzes the nature and characteristics of the aggregation of performance measures in institutional settings of multiple tasks and multiple periods. In multi-task settings, the number of tasks restricts the feasibility of a statistically sufficient aggregation and the nature of an economically sufficient aggregation. Statistical sufficiency of aggregation can be achieved only by multi-dimensional aggregate measures, whose minimum dimensionality is given by the number of tasks. If the number of aggregate measures is less than the number of tasks, an economically sufficient aggregation incurs loss of information even if there is no loss of information through the likelihood ratio. The results support the use of multi-dimensional aggregate measures to preserve the information content of performance measures in multi-task agencies. In a multi-period setting, the inter-temporal correlations among performance measures restrict the feasibility of a statistically sufficient aggregation and the nature of an economically sufficient aggregation. When performance measures are inter-temporally correlated, there is no statistically sufficient aggregation and an economically sufficient aggregation of the basic measures depends on the effort level to induce. The optimal aggregation is characterized by the agent's characteristics and the economic situation of the agency as well as the statistical properties of performance measures. In a long-term contract with multiple tasks, the inter-temporal covariance risk has a monotonic impact on the endogenous allocation of effort through the optimal relative incentive rate. The inter-temporal covariance risk, as well as the within-period risk premium, prevents the first best allocation of effort from being endogenously achieved even if the first best allocation is feasible.
License granted by Junwook Yoo ( on 2010-11-29T17:10:04Z (GMT): Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. Where the thesis is converted to, or otherwise made available in digital form, the University of Alberta will advise potential users of the thesis of the above terms. The author reserves all other publication and other rights in association with the copyright in the thesis, and except as herein provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.
Citation for previous publication

File Details

Date Uploaded
Date Modified
Audit Status
Audits have not yet been run on this file.
File format: pdf (Portable Document Format)
Mime type: application/pdf
File size: 594976
Last modified: 2015:10:12 12:03:18-06:00
Filename: Yoo_Junwook_Spring 2011.pdf
Original checksum: b8527618976935c37470d9ae42d2facb
Well formed: true
Valid: true
File title: Dissertation_TitlePage.pdf
File title: University of Alberta
File author: Faculty of Graduate Studies and Research
Page count: 122
Activity of users you follow
User Activity Date