Earnings management literature argues that managers' compensation contracts are based on financial performance measures (FPM). Indeed, the accounting earnings have been the subject of several studies. Few of them have attempted to check whether to introduce non financial performance measures...

We examine boards of directors' subjective adjustments to objective performance measures in executive incentive contracts. Using a unique hand-collected sample of adjusted earnings per share measures used to determine executives' annual bonuses, we provide large-sample evidence that subjective...

Earnings management literature argues that managers' compensation contracts are based on Financial Performance Measures (FPM). Indeed, the accounting earnings have been the subject of several studies. A few of them have attempted to check whether to introduce the Non-Financial Performance...