Access the full text.
Sign up today, get DeepDyve free for 14 days.
D. Rubin (1976)
Assignment to Treatment Group on the Basis of a CovariateJournal of Educational Statistics, 2
Natasha Burns, Simi Kedia (2004)
The Impact of Performance-Based Compensation on MisreportingCorporate Finance: Governance
Gary King, Langche Zeng (2001)
Logistic Regression in Rare Events DataPolitical Analysis, 9
J. Heckman, Richard Robb (1985)
Using Longitudinal Data to Estimate Age, Period and Cohort Effects in Earnings Equations
Heckman Heckman, Hotz Hotz (1989)
Choosing among Alternative Nonexperimental Methods for Estimating the Impact of Social Programs: The Case of Manpower TrainingJournal of the American Statistical Association, 84
Sekhon Sekhon (2009)
Multivariate and Propensity Score Matching Software with Automated Balance Optimization: The Matching Package for RJournal of Statistical Software
Bo Lu, Elaine Zanutto, R. Hornik, P. Rosenbaum (2001)
Matching With Doses in an Observational Study of a Media Campaign Against Drug AbuseJournal of the American Statistical Association, 96
J. Heckman, Hidehiko Ichimura, Petra Todd (1997)
Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training ProgrammeThe Review of Economic Studies, 64
F. Liddell (1983)
Simplified exact analysis of case-referent studies: matched pairs; dichotomous exposure.Journal of Epidemiology and Community Health, 37
J. Sekhon (2008)
Multivariate and Propensity Score Matching Software with Automated Balance Optimization: The Matching Package for RInformation Technology & Systems eJournal
Joseph O'Connor, Richard Priem, Joseph Coombs, K. Gilley (2006)
Do CEO Stock Options Prevent or Promote Fraudulent Financial ReportingAcademy of Management Journal, 49
Efendi Efendi, Srivastava Srivastava, Swanson Swanson (2007)
Why Do Corporate Managers Misstate Financial Statements? The Role of Option Compensation and Other FactorsJournal of Financial Economics, 85
Joseph Altonji, Todd Elder, Christopher Taber (2000)
Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic SchoolsJournal of Political Economy, 113
Jared Harris, P. Bromiley (2006)
Incentives to Cheat: The Influence of Executive Compensation and Firm Performance on Financial MisrepresentationSEIN Social Impacts of Business eJournal
Core Core, Holthausen Holthausen, Larcker Larcker (1999)
Corporate Governance, Chief Executive Officer Compensation, and Firm PerformanceJournal of Financial Economics, 51
Cremers Cremers, Nair Nair (2005)
Governance Mechanisms and Equity PricesJournal of Finance, 60
D. Rubin (1978)
Bayesian Inference for Causal Effects: The Role of RandomizationAnnals of Statistics, 6
Holland Holland (1986)
Statistics and Causal Inference (with discussion)Journal of the American Statistical Association, 81
Erickson Erickson, Hanlon Hanlon, Maydew Maydew (2006)
Is There a Link between Executive Equity Incentives and Accounting Fraud?Journal of Accounting Research, 44
A. Chatterjee, D. Hambrick, Dan Chiaburu, Theresa Cho, Craig Crossland, Jim Detert, Jim Fredrickson, Dave Harrison, Mat Hayward, Ann Mooney, Tim Pollock, Gerry Sanders, Linda Trevino (2006)
It ’ s All About Me : Narcissistic CEOs and Their Effects on Company Strategy and Performance
K. Hirano, G. Imbens (2005)
The Propensity Score with Continuous Treatments
(1991)
A Perspective on the Use of Limited-Dependent and Qualitative Variable Models in Accounting Research.
Johnson Johnson, Ryan Ryan, Tian Tian (2009)
Managerial Incentives and Corporate Fraud: The Sources of Incentives MattersReview of Finance, 13
Zoe-Vonna Palmrose, V. Richardson, Susan Scholz (2001)
Determinants of Market Reactions to Restatement AnnouncementsCapital Markets: Market Efficiency eJournal
P. Holland (1985)
Statistics and Causal InferenceJournal of the American Statistical Association, 81
M. Cremers, Vinay Nair (2003)
Governance Mechanisms and Equity PricesExperimental & Empirical Studies eJournal
(2006)
Evidence on How Systematic Differences Between ExecuComp and Non-ExecuComp Firms Can Affect Empirical Research Results.
D. Larcker, Scott Richardson, A. Tuna (2007)
Corporate Governance, Accounting Outcomes, and Organizational PerformanceCapital Markets: Asset Pricing & Valuation eJournal
K. Ye (2005)
Applied Bayesian Modeling and Causal Inference From Incomplete-Data PerspectivesTechnometrics, 47
(2002)
Observational Studies, 2nd ed
Burns Burns, Kedia Kedia (2006)
The Impact of Performance‐Based Compensation on MisreportingJournal of Financial Economics, 79
Bergstresser Bergstresser, Philippon Philippon (2006)
CEO Incentives and Earnings ManagementJournal of Financial Economics, 80
(2004)
Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models
C. Armstrong, C. Ittner, D. Larcker (2008)
Economic Characteristics, Corporate Governance, and the Influence of Compensation Consultants on Executive Pay LevelsLabor: Personnel Economics
M. Weisbach (1988)
Outside directors and CEO turnoverJournal of Financial Economics, 20
Q. Cheng, Terry Warfield, Minlei Ye (2004)
Equity Incentives and Earnings ManagementJournal of Accounting, Auditing & Finance, 26
Core Core, Guay Guay (2002)
Estimating the Value of Employee Stock Option Portfolios and Their Sensitivities to Price and VolatilityJournal of Accounting Research, 40
Li Jin (2000)
CEO Compensation, Diversification and IncentivesCorporate Finance: Governance
A. Roy (1951)
Some thoughts on the distribution of earnings, 3
Jap Efendi, Anup Srivastava, E. Swanson (2007)
Why Do Corporate Managers Misstate Financial Statements? the Role of Option Compensation and Other FactorsCorporate Finance: Governance
D. Rubin (1974)
Estimating causal effects of treatments in randomized and nonrandomized studies.Journal of Educational Psychology, 66
T. DiPrete, M. Gangl (2004)
7. Assessing Bias in the Estimation of Causal Effects: Rosenbaum Bounds on Matching Estimators and Instrumental Variables Estimation with Imperfect InstrumentsSociological Methodology, 34
J. Core, W. Guay (1999)
The Use of Equity Grants to Manage Optimal Equity Incentive LevelsSPGMI: Compustat Fundamentals (Topic)
J. Core, Robert Holthausen, D. Larcker (1999)
Corporate governance, chief executive officer compensation, and firm performance 1 The financial supJournal of Financial Economics
(2000)
Statistical Tools.
Clifford Smith, R. Watts (1992)
The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation PoliciesJournal of Financial Economics, 32
P. Rosenbaum, Donald Rubin (1983)
The central role of the propensity score in observational studies for causal effectsBiometrika, 70
D. Yermack (1996)
Higher market valuation of companies with a small board of directorsJournal of Financial Economics, 40
Q. Mcnemar (1947)
Note on the sampling error of the difference between correlated proportions or percentagesPsychometrika, 12
Harris Harris, Bromiley Bromiley (2007)
Incentives to Cheat: The Influence of Executive Compensation and Firm Performance on Financial MisrepresentationOrganizational Science, 18
(2004)
Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review.
C. Armstrong, Jennifer Blouin, D. Larcker (2011)
The Incentives for Tax PlanningOrganizations & Markets: Motivation & Incentives eJournal
(1998)
Firm Performance and Board Committee Structure
Patricia Dechow, Richard Sloan (1991)
Executive incentives and the horizon problem: An empirical investigationJournal of Accounting and Economics, 14
U. Derigs (1988)
Solving non-bipartite matching problems via shortest path techniquesAnnals of Operations Research, 13
S. Goldfeld, R. Quandt (1973)
The Estimation of Structural Shifts by Switching Regressions
M. Jensen (1993)
The Modern Industrial Revolution, Exit, and the Failure of Internal Control SystemsCGA: Governance & Internal Control Systems (Topic)
Anup Agrawal, Sahiba Chadha (2003)
Corporate Governance and Accounting ScandalsSocial Science Research Network
Dechow Dechow, Sloan Sloan (1991)
Executive Incentive and the Horizon ProblemJournal of Accounting & Economics, 14
J. Heckman (1989)
Choosing Among Alternative Nonexperimental Methods for Estimating the Impact of Social Programs: the Case of Manpower TrainingNBER Working Paper Series
C. Armstrong, D. Larcker (2009)
Discussion of “The impact of the options backdating scandal on shareholders” and “Taxes and the backdating of stock option exercise dates”Journal of Accounting and Economics, 47
Cheng Cheng, Warf ield Warf ield (2005)
Equity Incentives and Earnings ManagementThe Accounting Review, 80
Palmrose Palmrose, Richardson Richardson, Scholz Scholz (2004)
Determinants of Market Reactions to Restatement AnnouncementsJournal of Accounting & Economics, 37
F. Black, Myron Scholes (1973)
The Pricing of Options and Corporate LiabilitiesJournal of Political Economy, 81
Merle Erickson, Michelle Hanlon, Edward Maydew (2006)
Is There a Link between Executive Equity Incentives and Accounting Fraud?Corporate Finance: Governance
Daniel Bergstresser, Thomas Philippon (2004)
CEO Incentives and Earnings ManagementCorporate Governance & Accounting eJournal
James Brickley, J. Coles, Rory Terry (1994)
Outside directors and the adoption of poison pillsJournal of Financial Economics, 35
Larcker Larcker, Richardson Richardson, Tuna Tuna (2007)
Corporate Governance, Accounting Outcomes, and Organizational PerformanceThe Accounting Review, 82
D. Hosmer, S. Lemeshow (1991)
Applied Logistic Regression
A. Chatterjee, D. Hambrick (2007)
It's All about Me: Narcissistic Chief Executive Officers and Their Effects on Company Strategy and PerformanceAdministrative Science Quarterly, 52
(1997)
E[Y0 | X, D = 1] = E[Y0 | X, D = 0] = E[Y0 | X
W. Guay, J. Core (2002)
Estimating the Value of Employee Stock Option Portfolios and Their Sensitivities to Price and VolatilityFinancial Accounting
J. Cragg, R. Uhler (1970)
The Demand for AutomobilesCanadian Journal of Economics, 3
Shane Johnson, Harley Ryan, Yisong Tian (2008)
Managerial Incentives and Corporate Fraud: The Sources of Incentives MatterConsumer Financial Fraud eJournal
Daniel Ho, K. Imai, Gary King, E. Stuart (2007)
Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal InferencePolitical Analysis, 15
H. Demsetz, K. Lehn (1985)
The Structure of Corporate Ownership: Causes and ConsequencesJournal of Political Economy, 93
Jonathan Karpoff, D. Lee, Gerald Martin (2008)
The Cost to Firms of Cooking the BooksJournal of Financial and Quantitative Analysis, 43
ABSTRACT This study examines whether Chief Executive Officer (CEO) equity‐based holdings and compensation provide incentives to manipulate accounting reports. While several prior studies have examined this important question, the empirical evidence is mixed and the existence of a link between CEO equity incentives and accounting irregularities remains an open question. Because inferences from prior studies may be confounded by assumptions inherent in research design choices, we use propensity‐score matching and assess hidden (omitted variable) bias within a broader sample. In contrast to most prior research, we do not find evidence of a positive association between CEO equity incentives and accounting irregularities after matching CEOs on the observable characteristics of their contracting environments. Instead, we find some evidence that accounting irregularities occur less frequently at firms where CEOs have relatively higher levels of equity incentives.
Journal of Accounting Research – Wiley
Published: May 1, 2010
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.