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A Canonical Correlation Analysis of CEO Compensation and Corporate Performance in the Service Industry

A Canonical Correlation Analysis of CEO Compensation and Corporate Performance in the Service... This paper attempts to examine a canonical simultaneous relationship between service industry CEOs' compensation and corporate performance with respect to accountingbased and marketbased performance measures. In addition, this study examines the effect of firm size on compensation. The results of this study suggest that executive compensation depends simultaneously on both marketbased and accountingbased performance measures. EPS, ROA, ROE and Market Rate of Return are positively associated with both cash compensation and longterm compensation. Firm size is also positively related to the longterm compensation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Accounting and Finance Emerald Publishing

A Canonical Correlation Analysis of CEO Compensation and Corporate Performance in the Service Industry

Review of Accounting and Finance , Volume 2 (3): 19 – Mar 1, 2003

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1475-7702
DOI
10.1108/eb027013
Publisher site
See Article on Publisher Site

Abstract

This paper attempts to examine a canonical simultaneous relationship between service industry CEOs' compensation and corporate performance with respect to accountingbased and marketbased performance measures. In addition, this study examines the effect of firm size on compensation. The results of this study suggest that executive compensation depends simultaneously on both marketbased and accountingbased performance measures. EPS, ROA, ROE and Market Rate of Return are positively associated with both cash compensation and longterm compensation. Firm size is also positively related to the longterm compensation.

Journal

Review of Accounting and FinanceEmerald Publishing

Published: Mar 1, 2003

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