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

共 50 条

[41] Does peer firm executive compensation affect earnings management?
Park, KoEun
[J]. MANAGERIAL FINANCE, 2019, 45 (01) : 54 - 71
[42] Executive Compensation and Earnings Management -An Empirical Study of Manufacturing Industry
Lyu, Chan
Zhang, Chao
[J]. PROCEEDINGS OF THE 2017 INTERNATIONAL CONFERENCE ON ECONOMIC DEVELOPMENT AND EDUCATION MANAGEMENT (ICEDEM 2017), 2017, 107 : 4 - 8
[43] The effect of internal control deficiencies on the usefulness of earnings in executive compensation
Brown, Kareen E.
Lim, Jee-Hae
[J]. ADVANCES IN ACCOUNTING, 2012, 28 (01) : 75 - 87
[44] The Internal Control, Executive Compensation and the Real Earnings Management Activities
Sun Rongchao
[J]. Proceedings of the Second International Symposium - Management, Innovation and Development, 2015, : 473 - 477
[45] The CEO share of earnings: A new approach to evaluating executive compensation
Zhao K.M.
Baum C.L.
Ford W.F.
[J]. Business Economics, 2009, 44 (2) : 120 - 122
[46] The effects of operating cash flow disclosure on earnings comparability, analysts' forecasts, and firms' investment decisions during the Pre-IFRS era
Caban-Garcia, Maria T.
Choi, Heeick
Kim, Myungsun
[J]. BRITISH ACCOUNTING REVIEW, 2020, 52 (04):
[47] CASH FLOW EARNINGS - NEW CONCEPT IN SECURITY ANALYSIS
MANN, EJ
[J]. ACCOUNTING REVIEW, 1958, 33 (03): : 423 - 426
[48] The impact of earnings extremity on information content of cash flow
Mostafa, Wael
Dixon, Rob
[J]. REVIEW OF ACCOUNTING AND FINANCE, 2013, 12 (01) : 81 - +
[49] Cash flow duration and market reactions to earnings announcements
Gao, Wenlian
[J]. REVIEW OF QUANTITATIVE FINANCE AND ACCOUNTING, 2024, 63 (02) : 679 - 714
[50] Earnings volatility, cash flow volatility, and informed trading
Jayaraman, Sudarshan
[J]. JOURNAL OF ACCOUNTING RESEARCH, 2008, 46 (04) : 809 - 851

← 1 2 3 4 5 →