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Managerial Myopia Is the Distortion in Incentives That Result from Using

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Managerial myopia is the distortion in incentives that result from using accounting measures to evaluate performance.


Definitions:

Z-scores

An indicator that shows the number of standard deviations a data point is away from the average.

Greater Than

A mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Z-scores

Standardized scores that measure the distance of a score from the mean, indicating how many standard deviations an element is from the mean.

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