Factors Associated with the Use of LongTerm Earnings and MarketBased Compensation Plans

Factors Associated with the Use of LongTerm Earnings and MarketBased Compensation Plans Factors associated with the use of longterm plans in management compensation contracts and the choice between earningsbased performance plans and marketbased longterm plans are examined. Results indicate the firms using longterm plans are large, have diffuse ownership and more longterm growth. Furthermore, performance plans are more likely to be used when stockreturn variability is high relative to earnings variability. Firms using performance plans are also larger and have more diffuse ownership than firms with marketbased plans alone. Overall, the evidence is consistent with longterm plans serving as incentive alignment mechanisms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Finance Emerald Publishing

Factors Associated with the Use of LongTerm Earnings and MarketBased Compensation Plans

Managerial Finance, Volume 23 (5): 16 – May 1, 1997

Loading next page...
 
/lp/emerald-publishing/factors-associated-with-the-use-of-longterm-earnings-and-marketbased-riFHtKaMsX
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0307-4358
DOI
10.1108/eb018625
Publisher site
See Article on Publisher Site

Abstract

Factors associated with the use of longterm plans in management compensation contracts and the choice between earningsbased performance plans and marketbased longterm plans are examined. Results indicate the firms using longterm plans are large, have diffuse ownership and more longterm growth. Furthermore, performance plans are more likely to be used when stockreturn variability is high relative to earnings variability. Firms using performance plans are also larger and have more diffuse ownership than firms with marketbased plans alone. Overall, the evidence is consistent with longterm plans serving as incentive alignment mechanisms.

Journal

Managerial FinanceEmerald Publishing

Published: May 1, 1997

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off