Huang, Xingyu; Reeb, David M.; Zhao, Wanli - 2023
The prevailing agency theory framework in executive compensation studies highlights the conflict of interest between … (DPMs), such as credit ratings and debt-to-EBITDA ratios, into executive compensation contracts. Using a manually collected … dataset, we find that approximately 19% of US publicly traded firms incorporated DPMs in their compensation contracts between …