endogeneity exists in that fixed compensation and salaries provide disincentives for managers to practice aggressive earnings … management whereas at-risk compensation and bonuses induce managers to employ income-increasing discretionary accruals to inflate …

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 …

comprehensive income in a performance statement. Our empirical evidence on a broad cross-section of firms shows that managers with …, managers act as if they believe that comprehensive income reporting location matters …