The role of accounting when employees participate in decision-making

Accounting information is made available to managers and employees to facilitate their participation in decision-making. However, both research and management experience have demonstrated that employee participation is useful under limited circumstances. Therefore a study using accounting information that examines employee participation in a controlled environment is warranted. Laboratory experiments demonstrate the ability to increase productivity by sharing accounting information with players in a prisoner's dilemma. Explicit information in the form of a report (much like accounting information) is successful in achieving greater productivity. However, implicit information does not achieve the same results. Interestingly, the two mechanisms together offer the highest level of productivity.