What Does CEOs’ Pay-for-Performance Reveal About Shareholders’ Attitude Toward Earnings Overstatements?
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 of...
| Authors: | ; ; |
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| 格式: | 電子 Article |
| 語言: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | 載入...
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| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| 出版: |
2017
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| In: |
Journal of business ethics
Year: 2017, 卷: 146, 發布: 2, Pages: 419-450 |
| Further subjects: | B
G32
B G34 B L21 B M52 B M41 B J33 B CEO incentive pay B M43 B Sarbanes–Oxley Act B Pay-for-performance sensitivity B Firm objectives B Earnings management B Shareholder myopia |
| 在線閱讀: |
Volltext (JSTOR) Volltext (lizenzpflichtig) |
| 總結: | 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 of incentive pay prior to 2002. To corroborate our interpretation, we show that (i) CEO pay-for-performance sensitivities are higher among firms whose shareholders stand to benefit from overstatements; (ii) this cross-sectional relationship weakens significantly after SOX; and (iii) the within-firm decrease in pay-for-performance sensitivity is most pronounced among firms with high pre-SOX shareholder benefits from overstatements. |
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| ISSN: | 1573-0697 |
| Contains: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-015-2891-y |
