Earnings and cash flow comparability in executive compensation

被引：2

作者：

Park, Sung-Jin ^{[1
]}

Nwaeze, Emeka T. ^{[2
]}

机构：

[1] Indiana Univ, Judd Leighton Sch Business & Econ, South Bend, IN 46615 USA

[2] Univ Texas San Antonio, Coll Business, San Antonio, TX USA

来源：

ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS | 2023年 / 30卷 / 01期

关键词：

earnings comparability; cash flow comparability; CEO compensation; RELATIVE PERFORMANCE EVALUATION; FINANCIAL STATEMENT COMPARABILITY; CEO COMPENSATION; ACCOUNTING INFORMATION; MORAL HAZARD; FIRMS; DETERMINANTS; SENSITIVITY; COMPONENTS; MARKET;

D O I：

10.1080/16081625.2021.1953389

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine whether cross-firm comparability of earnings and operating cash flows influence the usefulness of earnings and cash flows in CEO compensation. We find that earnings (cash flow) comparability is positively associated with the compensation weight of earnings (cash flow) and negatively associated with the weight of cash flow (earnings), suggesting a substitution effect between earnings and cash flow measures. We also find that peer firms 'stock returns get less negatively associated with CEO compensation as a firm's earnings comparability increases, suggesting that the filtering role of stock return-based relative performance evaluation decreases as earnings comparability increases.

引用

页码：72 / 95

页数：24

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