In the empirical estimation of the relation between CEO pay and both firm and peer performance, researchers typically include conventional accounting-based measures that reflect firm performance net of executive pay expense. We analytically show that when firms evaluate CEO performance relative...

This paper examines whether issuing management earnings guidance motivates a firm to raise its level of performance. The failure of management to attain a forecast may reflect poorly on its industry understanding, knowledge of the firm, and management capability. Accordingly, we hypothesize and...

Insiders have private information and often disclose non-GAAP earnings metrics with the claim that such metrics inform investors about earnings persistence. However, because insiders have private information about earnings persistence, they have opportunities to take advantage of this...