Purpose The purpose of this paper is to examine how executive pay schemes influence managerial efficiency, which the authors measure as the risk-adjusted firm performance. Design/methodology/approach The authors utilized hierarchical regression to test the hypotheses. Findings The authors find...

This study investigates the impact of job complexity and firm as well as CFO-specific performance on CFO compensation. We examine job complexity in terms of the intricacies of a firm’s operations and whether the CFO serves on the Board of Directors. Accounting and stock market rates of return...

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...

We utilize information only recently disclosed on Form 990 to examine the use, and consequences of, incentive pay at nonprofit organizations. Bonuses are common in nonprofits, as we observe that approximately 45 percent of the forty-four thousand organization-year observations in our sample...

In this study, we examine whether the monetary incentives associated with equity ownership (broadly defined to include stock and stock options) induce managers to maintain strong internal controls. Supporting the notion that equity ownership provides management incentive to strengthen the...