Investment opportunities and the structure of executive compensation

被引：200

作者：

Baber, WR ^{[1
]}

Janakiraman, SN ^{[1
]}

Kang, SH ^{[1
]}

机构：

[1] CARNEGIE MELLON UNIV,GRAD SCH IND ADM,PITTSBURGH,PA 15213

来源：

JOURNAL OF ACCOUNTING & ECONOMICS | 1996年 / 21卷 / 03期

基金：

美国安德鲁·梅隆基金会;

关键词：

management compensation; investment opportunities; performance measures;

D O I：

10.1016/0165-4101(96)00421-1

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We extend the contracting paradigm advanced in Smith and Watts (1992) to consider cross-sectional associations between investment opportunities and the sensitivity of CEO compensation to performance measures. We predict stronger associations between compensation and performance for firms with greater investment opportunities. We also predict greater use of market-based, rather than accounting-based, performance indicators as a basis for incentive payments when investment opportunities are substantial components of firm value. Results for specifications of 1992 and 1993 changes in compensation paid to CEOs of 1,249 publicly-traded U.S. firms are consistent with these hypotheses.

引用

页码：297 / 318

页数：22

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