This paper investigates whether and how Japanese firms use management earnings forecasts as a performance target for determining executive cash compensation. Consistent with the implications of the agency theory, we find that the sensitivity of executive cash compensation varies with the extent...

This study examines whether budget ratcheting occurs in Japanese private colleges and universities (PC&Us) and how debtholders affect it. We predict that managers of Japanese PC&Us have incentives to increase their budgets in order to enhance their reputation from internal stakeholders;...

We examine the effect of managerial ownership on the cost of debt as measured by the interest rate spread on corporate bonds for Japanese firms. First, we find that the managerial ownership is positively associated with interest rate spread after controlling for the other Japanese ownership...