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Earnings Management from the Bottom Up : An Analysis of Managerial Incentives Below the CEO

Oberholzer-Gee, Felix - 2012

Performance-based pay is an important instrument to align the interests of managers with the interests of shareholders …. However, recent evidence suggests that high-powered incentives also provide managers with incentives to manipulate the firm …'s reported earnings. The previous literature has focused primarily on Chief Executive Officers, but managers further down in the …

Persistent link: https://www.econbiz.de/10013112655

What Does CEOs' Pay-for-Performance Reveal About Shareholders' Attitude Toward Earnings Overstatements?

Guthrie, Katherine; Kwon, Illoong; Sokolowsky, Jan - 2015

If overstatements were a symptom of the agency conflict, pay-for-performance sensitivities should have increased in response to the additional penalties for misreporting imposed by SOX. Our finding of their decrease is inconsistent with the view that overstatements were an unintended consequence...

Persistent link: https://www.econbiz.de/10014204131

On the Effects of the Degree of Discretion in Reporting Managerial Performance

De Waegenaere, Anja; Wielhouwer, J. - 2008

We consider a principal-agent setting in which a manager's compensation depends on a noisy performance signal, and the manager is granted the right to choose an (accounting) method to determine the value of the performance signal. We study the effect of the degree of such reporting discretion,...

Persistent link: https://www.econbiz.de/10014220160

The Impact of Earnings Management and Managerial Ability on Management Compensation

El Diri, Malek; Alhadab, Mohammad - 2021

behaviour on executive compensation conditioned on managerial ability. We find that managers with better abilities are … part of superior managers’ skills and should be incorporated in their reward contracts. The results show that managerial …

Persistent link: https://www.econbiz.de/10013250532

CEO Equity Incentives and Financial Misreporting : The Role of Auditor Expertise

Jayaraman, Sudarshan - 2014

on misreporting by limiting the ability of managers to carry out such manipulative activities. Using auditor industry …

Persistent link: https://www.econbiz.de/10013052947

CEO Equity Incentives and Audit Fees

Kim, Yongtae - 2014

This study examines whether CEO equity incentives have an impact on audit pricing. Prior studies investigate whether CEO equity incentives motivate executives to manage earnings for personal financial gains. Our focus is on whether auditors perceive CEO equity incentives to be associated with...

Persistent link: https://www.econbiz.de/10013060839

Determinants and consequences of clawback provisions in management compensation contracts : a structured literature review on empirical evidence

Velte, Patrick - In: Business research 13 (2020) 3, pp. 1417-1450

managers, their contribution may be dependent on other corporate governance mechanisms, e.g. board composition, as significant …

Persistent link: https://www.econbiz.de/10012422403

Pay-for-performance Sensitivity of CEO Equity Compensation and Financial Misreporting : Evidence from the Personal Wealth Pursuit Motive of CEOs

Cao, Wenjiao; Jia, Yuping; Zeng, Yachang - 2021

The incentive effect of CEO portfolio delta (i.e., the sensitivity of CEO wealth to changes in stock price) on financial misreporting is inconclusive given a complex reward-risk tradeoff faced by CEOs (e.g., a positive “reward effect” versus a negative “risk effect”). We propose that the...

Persistent link: https://www.econbiz.de/10013235090

CEO After-Tax Compensation Incentives and Corporate Tax Avoidance

Gaertner, Fabio B. - 2015

I examine the association between CEOs’ after-tax incentives and their firms’ level of tax avoidance. Economic theory holds that firms should compensate CEOs on an after-tax basis when the expected tax savings generated from additional incentive alignment outweigh the incremental...

Persistent link: https://www.econbiz.de/10014045873

CEO Remuneration : Structure and Levels

Walker, Julie K. - 2008

This paper provides evidence about CEO remuneration structure and levels, as well as key CEO and board attributes, for a large sample of listed Australian firms during the 2004-2006 period. As such it provides recent evidence about how Australian executives are rewarded and permits observation...

Persistent link: https://www.econbiz.de/10014215655