Access the full text.
Sign up today, get DeepDyve free for 14 days.
B. Gerhart, G. Milkovich (1990)
Organizational Differences in Managerial Compensation and Financial PerformanceAcademy of Management Journal, 33
Ivan Brick, Oded Palmon, John Wald (2002)
CEO Compensation, Director Compensation, and Firm Performance: Evidence of CronyismCapital Markets: Asset Pricing & Valuation eJournal
Q Cheng, DB Farber (2008)
Earnings restatements, changes in CEO compensation and firm performanceAccount Rev, 83
Jordan Voss (2012)
Why do Firms Repurchase Stock, 14
(1997)
An investigation of mandated compensation disclosure as a corporate governance mechanism, working paper
Richard Lambert, D. Larcker (1987)
AN ANALYSIS OF THE USE OF ACCOUNTING AND MARKET MEASURES OF PERFORMANCE IN EXECUTIVE-COMPENSATION CONTRACTSJournal of Accounting Research, 25
A. Andjelkovic, G. Boyle, Warren McNoe (2000)
Public Disclosure of Executive Compensation: Do Shareholders Need to Know?S&P Global Market Intelligence Research Paper Series
Robert Holthausen, D. Larcker, Richard Sloan (1995)
Annual bonus schemes and the manipulation of earningsJournal of Accounting and Economics, 19
PM Healy (1985)
The effect of bonus schemes on accounting decisionsJ Account Econ, 7
Her-Jiun Sheu, Huimin Chung, Chih-Liang Liu (2010)
Comprehensive Disclosure of Compensation and Firm Value: The Case of Policy Reforms in an Emerging MarketOrganizations & Markets: Policies & Processes eJournal
Michelle Hanlon, Shivaram Rajgopal, T. Shevlin (2002)
Are Executive Stock Options Associated with Future Earnings?Columbia Business School Research Paper Series
Joseph Haubrich (1991)
Risk Aversion, Performance Pay, and the Principal-Agent ProblemJournal of Political Economy, 102
(2004)
Top executive incentives and firm size
Jonathan Leonard (1990)
Executive Pay and Firm PerformanceIndustrial & Labor Relations Review, 43
W. Elliott (2006)
Are Investors Influenced by Pro Forma Emphasis and Reconciliations in Earnings AnnouncementsThe Accounting Review, 81
Scott Schaefer (1998)
The Dependence of payPerformance Sensitivity on the Size of the FirmReview of Economics and Statistics, 80
R. Mangel, Harbir Singh (1993)
Ownership Structure, Board Relationships and CEO Compensation in Large US CorporationsAccounting and Business Research, 23
K. Chalmers, P. Koh, G. Stapledon (2006)
The Determinants of CEO Compensation: Rent Extraction or Labour Demand?ERN: Governance & Ownership (Topic)
M. Allen (1981)
Power and Privilege in the Large Corporation: Corporate Control and Managerial CompensationAmerican Journal of Sociology, 86
(1985)
Corporate performance and managerial remuneration
John Garen (1994)
Executive Compensation and Principal-Agent TheoryJournal of Political Economy, 102
C. Mishra, Daniel Mcconaughy, D. Gobeli (2000)
Effectiveness of CEO pay-for-performanceReview of Financial Economics, 9
Barbara Lougee, Carol Marquardt (2004)
Earnings Informativeness and Strategic Disclosure: An Empirical Examination of 'Pro Forma' EarningsThe Accounting Review, 79
N. Vafeas, James Waegelein, Marianna Papamichael (2003)
The Response of Commercial Banks to Compensation ReformReview of Quantitative Finance and Accounting, 20
Tod Perry, M. Zenner (2000)
Pay for Performance? Government Regulation and the Structure of Compensation ContractsComparative Political Economy: Regulation eJournal
Chih-Ying Chen (2003)
Investment Opportunities and the Relation between Equity Value and Employees' BonusCorporate Finance: Governance
Richard Lambert, D. Larcker, K. Weigelt (1993)
The Structure of Organizational IncentivesAdministrative Science Quarterly, 38
Nilabhra Bhattacharya, E. Black, Theodore Christensen, Richard Mergenthaler (2004)
Empirical Evidence on Recent Trends in Pro Forma Reporting
Shujun Ding, Zhenyu Wu, Yuanshun Li, Chunxin Jia (2010)
Executive compensation, supervisory board, and China’s governance reform: a legal approach perspectiveReview of Quantitative Finance and Accounting, 35
Patricia Dechow, M. Huson, Richard Sloan (1993)
The effect of restructuring charges on executives' cash compensationAccounting review: A quarterly journal of the American Accounting Association, 69
Kristina Diekmann (1997)
‘Implicit justifications’ and self-serving group allocations†Journal of Organizational Behavior, 18
S Finkelstein, DC Hambrick (1989)
Chief executive compensation: a study of the intersection of markets and political processesStrateg Manag J, 10
VJ Defeo, RA Lambert, DF Larcker (1989)
The executive compensation effects of equity-for-debt swapsAccount Rev, 64
Angela Morgan, A. Poulsen (2001)
Linking pay to performance--compensation proposals in the S&P 500Journal of Financial Economics, 62
HS Fan, CL Chen (2006)
Evaluating the mandatory disclosure effect of pro forma EPS deducted by employee bonus in TaiwanInt J Account Stud, 42
Q. Cheng, D. Farber (2008)
Earnings Restatements, Changes in CEO Compensation, and Firm PerformanceFinancial Accounting
Stuart Rosenstein, Jeffrey Wyatt (1990)
Outside directors, board independence, and shareholder wealth☆Journal of Financial Economics, 26
IE Brick, O Palmon, LK Wald (2006)
CEO compensation, director compensation, and firm performance: evidence of cronyism?J Corp Financ, 12
R. Banker, S. Datar (1989)
Sensitivity, Precision, and Linear Aggregation of Signals for Performance EvaluationJournal of Accounting Research, 27
Wilbur Lewellen, B. Huntsman (1970)
Managerial Pay and Corporate PerformanceThe American Economic Review, 60
Chih-Ying Chen (2002)
Additional Evidence on the Association Between Director Stock Ownership and Incentive CompensationReview of Quantitative Finance and Accounting, 19
Adair Morse, Vikram Nanda, Amit Seru (2008)
Are Incentive Contracts Rigged by Powerful CEOs?Corporate Governance: Actors & Players eJournal
CY Chen (2003)
Investment opportunities and the relation between equity value and employees’ bonusJ Bus Financ Account, 30
I. Laksmana (2007)
Corporate Board Governance and Voluntary Disclosure of Executive Compensation PracticesBHNP: Public Policy (Topic)
J. Abowd (1990)
Does Performance-Based Managerial Compensation Affect Corporate Performance?Industrial & Labor Relations Review, 43
J. Core, Robert Holthausen, D. Larcker (1999)
Corporate governance, chief executive officer compensation, and firm performance 1 The financial supJournal of Financial Economics
Clifford Smith, R. Watts (1992)
The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation PoliciesJournal of Financial Economics, 32
(1958)
Estimation of relationship for limited dependent variable
(2006)
Evaluating the mandatory disclosure effect of pro forma EPS deducted
Daniel Mcconaughy, C. Mishra (1996)
Debt, Performance-Based Incentives, and Firm PerformanceFinancial Management, 25
J Fattorusso, R Skovoroda, T Buck, A Bruce (2007)
UK executive bonuses and transparency—a research noteBr J Ind Relat, 45
Kevin Murphy, M. Jensen (1990)
Performance Pay and Top Management IncentivesLabor: Personnel Economics
LA Bebchuk, JM Fried (2003)
Executive compensation as an agency problemJ Econ Perspect, 17
M. Conyon, Simon Peck (1998)
Board Control, Remuneration Committees, and Top Management CompensationAcademy of Management Journal, 41
JJ Gaver, KM Gaver (1998)
The relation between nonrecurring accounting transactions and top executive cash compensationAccount Rev, 73
B Hall, J Liebman (1998)
Are CEOs really paid like bureaucrats?Q J Econ, 113
Jay Fattorusso, Rodion Skovoroda, A. Bruce (2007)
UK Executive Bonuses and Transparency - A Research NoteCorporate Finance: Governance
(1992)
Do outside directors monitor managers? Evidence from tender offer bids
John Donohue (1992)
Executive CompensationCompensation & Benefits Review, 24
R. Gibbons, Kevin Murphy (1989)
Relative Performance Evaluation for Chief Executive OfficersIndustrial & Labor Relations Review, 43
A Andjelkovic, G Boyle, W McNoe (2002)
Public disclosure of executive compensation: do shareholders need to know?Pac Basin Financ J, 10
JE Core, RW Holthausen, DF Larcker (1999)
Corporate governance, chief executive officer compensation, and firm performanceJ Financ Econ, 51
PM Healy, S Kang, KG Palepu (1987)
The effects of accounting procedure changes on top executives’ cash salary and bonus compensationJ Account Econ, 9
(2013)
THE EFFECT OF SHAREHOLDER PROPOSALS ON EXECUTIVE COMPENSATION
HJ Sheu, H Chung, CL Liu (2010)
Comprehensive disclosure of compensation and firm value: the case of policy reforms in an emerging marketJ Bus Financ Account, 37
J. Boone, Inder Khurana, K. Raman (2011)
Investor pricing of CEO equity incentivesReview of Quantitative Finance and Accounting, 36
S. Rosen (1982)
Authority, Control, and the Distribution of EarningsThe Bell Journal of Economics, 13
M Hanlon, S Rajgopal, T Shevlin (2003)
Are executive stock options associated with future earnings?J Account Econ, 36
A Morse, V Nanda, A Seru (2010)
Are incentive contracts rigged by powerful CEOs?J Financ, 66
L. Bebchuk, J. Fried (2003)
Executive Compensation as an Agency ProblemCorporate Law: Corporate & Takeover Law eJournal
Fathi Elloumi, Jean-Pierre Gueyié (2001)
CEO compensation, IOS and the role of corporate governanceCorporate Governance, 1
B. Hall, Jeffrey Liebman (1997)
Are CEOS Really Paid Like Bureaucrats?Organizations & Markets eJournal
Wen-Chung Guo, Shin-Rong Shiah-Hou, Yu-Wen Yang (2006)
Stock bonus compensation and firm performance in TaiwanManagerial Finance, 32
S. Finkelstein, D. Hambrick (1989)
Chief executive compensation: A study of the intersection of markets and political processesSouthern Medical Journal, 10
Kevin Hallock (1997)
Reciprocally Interlocking Boards of Directors and Executive CompensationJournal of Financial and Quantitative Analysis, 32
Wen-Hsiang Lin, Po-Sheng Ko, Hsueh-Fang Chien, Wen-Chih Lee (2010)
An Empirical Study on Issues in taiwanese Employee Reward PlansReview of Pacific Basin Financial Markets and Policies, 13
(2009)
Executive directors, pay disclosures and incentive compensation in Europe, working paper
(2003)
Top executive compensation structure in Taiwan ’ s listed companies
(2003)
Employee bonuses are an expense of the firm
T Perry, M Zenner (2001)
Pay for performance? Government regulation and the structure of compensation contractsJ Financ Econ, 62
G. Benston (1985)
The self-serving management hypothesis: Some evidenceJournal of Accounting and Economics, 7
Richard Sloan (1993)
Accounting earnings and top executive compensationJournal of Accounting and Economics, 16
This paper examines the effect of mandatory pro forma earnings disclosure on the alignment of CEO share bonuses and firm performance (i.e., annual stock returns). Using 6,583 executive-level observations from 986 non-financial firms in Taiwan over the period 1999–2004, we find a significant shift in the CEO share bonus pay-earnings relation caused by a marked reduction in bonus shares after the new disclosure rule becomes effective. The change in CEO compensation structure in turn leads to a closer link between CEO stock bonuses and annual stock returns. The result suggests that a more transparent earnings disclosure could positively affect board choices regarding compensation arrangements, thus inducing a better convergence of manager and shareholder interests.
Review of Quantitative Finance and Accounting – Springer Journals
Published: Feb 7, 2012
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.