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implications for managers' strategic earning guidance behavior. We find corporate boards rely on earnings forecasts provided by … both financial analysts and managers in setting performance goals. Also, the weight boards place on a manager's earnings … forecasts increases with managers' information advantage over analysts. We next examine the implications of this process for …
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We examine differences in CEO achievement of EPS goals set separately through analyst forecasts and firm bonus plans. Having different goals for the same performance metric enables us to assess their relative importance in incentivizing CEOs. We find CEOs frequently achieve analyst forecasts,...
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This study investigates whether firms revise executive bonus compensation targets based on past performance. Studies in this area suffer from a lack of detailed information related to executive performance targets. Using mandatory disclosures of executive compensation information under the U.S....
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Would moving to relative performance contracts improve the alignment between CEO pay and performance? To address this we exploit the large rise in relative performance awards and the share of equity pay in the UK over the last two decades. Using new employer-employee matched datasets we find...
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