Discussion of “Are CEOs compensated for value destroying growth in earnings?”

Discussion of “Are CEOs compensated for value destroying growth in earnings?” This discussion provides several explanations for the evidence presented in Balachandran and Mohanram (2010) that are consistent with efficient contracting. I also show that—contrary to the suggestion of the title—CEOs do not benefit from value destroying growth in earnings. Finally, I argue that there is no conclusive evidence that corporate investments destroy value. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Accounting Studies Springer Journals

Discussion of “Are CEOs compensated for value destroying growth in earnings?”

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Publisher
Springer US
Copyright
Copyright © 2010 by The Author(s)
Subject
Business and Management; Accounting/Auditing; Corporate Finance; Public Finance
ISSN
1380-6653
eISSN
1573-7136
D.O.I.
10.1007/s11142-010-9125-4
Publisher site
See Article on Publisher Site

Abstract

This discussion provides several explanations for the evidence presented in Balachandran and Mohanram (2010) that are consistent with efficient contracting. I also show that—contrary to the suggestion of the title—CEOs do not benefit from value destroying growth in earnings. Finally, I argue that there is no conclusive evidence that corporate investments destroy value.

Journal

Review of Accounting StudiesSpringer Journals

Published: Mar 16, 2010

References

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