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Discretionary Accounting Choices and CEO Compensation

Balsam, Steven - 2014

This paper make four important contributions to the accounting literature. First, it shows that discretionary accruals are associated with CEO cash compensation, but that the coefficient is significantly less than that on nondiscretionary accruals. Second, a differential reaction is found to...

Persistent link: https://www.econbiz.de/10014124276

Financial Accounting Regulation and Executive Compensation Design

Zhou, Wei - 2011

We examine the economic consequences of the recent adoption of SFAS 123(R) in the United States. Consistent with the conjectures of prior research, our results show that the removal of favorable accounting treatment for stock options post SFAS 123(R) results in a switch from stock options to...

Persistent link: https://www.econbiz.de/10013123417

Equilibrium Earnings Management and Managerial Compensation in a Multiperiod Agency Setting

Dutta, Sunil - 2014

To investigate how the possibility of earnings manipulation affects managerial compensation contracts, we study a two period agency setting in which a firm's manager can engage in "window dressing" activities to manipulate reported accounting earnings. Earnings manipulation boosts the reported...

Persistent link: https://www.econbiz.de/10013065788

On the Effects of the Degree of Discretion in Reporting Managerial Performance

De Waegenaere, Anja; Wielhouwer, J. - 2008

We consider a principal-agent setting in which a manager's compensation depends on a noisy performance signal, and the manager is granted the right to choose an (accounting) method to determine the value of the performance signal. We study the effect of the degree of such reporting discretion,...

Persistent link: https://www.econbiz.de/10014220160

Returnee Executives and Accounting Conservatism

Keping, Wu - 2018

Based on the data of Chinese listed companies, this paper examines the impact of returnee's executives on accounting conservatism. We find that employing returnee executives can significantly improve accounting conservatism, especially in companies with weak internal control, high proportion of...

Persistent link: https://www.econbiz.de/10012910105

Earnings Management Following Duality-Creating Successions : Ethnostatistics, Impression Management and Agency Theory

Davidson, Wallace N. - 2009

We relate impression and earnings management to the field of ethnostatistics, the study of how statistics are produced and managed. By further linking impression management and agency theory, we show that earnings management may exacerbate agency problems. We hypothesize that earnings-increasing...

Persistent link: https://www.econbiz.de/10013155839

Curbing Earnings Management : Experimental Evidence on How Clawback Provisions and Board Monitoring Affect Managers’ Use of Discretion

Hales, Jeffrey - 2018

We examine how clawback provisions and board monitoring affect managers' use of discretion to achieve earnings targets … amount of earnings management activity. This null result arises because, while clawbacks do curb the extent to which managers … managers' use of discretion when making operational decisions (real earnings management). In contrast, strong board monitoring …

Persistent link: https://www.econbiz.de/10012923737