FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W1497262011> ?p ?o ?g. }

• W1497262011 abstract "The purpose of this paper is to provide evidence on whether there have been changes over time in the compensation-earnings relation. We investigate whether there is a trend during the period 1971-95 in the sensitivity of executive pay to reported earnings and in the importance of earnings relative to other information in explaining executive pay. As addressed in Gjesdal [1981] and in the model we develop, the relevance of a performance measure for valuing the firm may not be the same as its relevance for the purpose of inferring managers' contributions to firm value. Whether the decline in the value-relevance of earnings documented in recent research is accompanied by a decline in the stewardship relevance of earnings is an empirical issue that is the focus of this paper. We estimate pooled regressions of the pay-earnings relation allowing intercepts and slopes to vary by year and industry. While we find significant positive correlation between the sensitivities of firm value and executive pay to earnings, our results fail to detect a general trend in the sensitivity of executive pay to reported earnings. We also conduct similar pooled estimations of the pay-performance relation incorporating non-earnings information reflected in stock prices to assess the importance of earnings relative to other information. Our results suggest that there has been a general decline during the last 25 years in the importance of earnings in explaining cash compensation relative to other information reflected in stock returns. We further analyze our results indicating a decline in pay-earnings sensitivity relative to information in stock returns in the context of insights gained from existing studies of trends in the value relevance of earnings. We analyze changes in the sensitivity of earnings relative to accounting performance measures that explicitly incorporate balance sheet information. We find that, in contrast to price-earnings studies, the documented decline in relative pay-earnings sensitivity is not attributable to a shift from earnings to balance sheet-based measures. Finally, we examine whether factors capturing aspects of the quality of earnings and firm size that explain the shift in the value relevance from earnings to book values also explain shifts in the relative stewardship relevance of earnings. We find that changes over time in the proportion of intangible-intensive firms, the average magnitude of special items included in earnings and the frequency of negative earnings appear to explain much of the trend in relative pay-earnings sensitivity over the sample period." @default.
• W1497262011 created "2016-06-24" @default.
• W1497262011 creator A5016406163 @default.
• W1497262011 creator A5048893179 @default.
• W1497262011 creator A5050838493 @default.
• W1497262011 creator A5087290210 @default.
• W1497262011 date "1998-01-01" @default.
• W1497262011 modified "2023-09-23" @default.
• W1497262011 title "An Empirical Investigation of Trends in the Absolute and Relative Use of Earnings in Determining Cash Compensation of CEOs" @default.
• W1497262011 cites W1542604417 @default.
• W1497262011 cites W1585078080 @default.
• W1497262011 cites W1966961670 @default.
• W1497262011 cites W1967158564 @default.
• W1497262011 cites W1973429519 @default.
• W1497262011 cites W1995440318 @default.
• W1497262011 cites W2010743243 @default.
• W1497262011 cites W2036323865 @default.
• W1497262011 cites W2043049577 @default.
• W1497262011 cites W2044854242 @default.
• W1497262011 cites W2067294622 @default.
• W1497262011 cites W2069931157 @default.
• W1497262011 cites W2106580408 @default.
• W1497262011 cites W2154398438 @default.
• W1497262011 cites W2162473857 @default.
• W1497262011 cites W2313999944 @default.
• W1497262011 cites W2320315155 @default.
• W1497262011 cites W2331407295 @default.
• W1497262011 doi "https://doi.org/10.2139/ssrn.130910" @default.
• W1497262011 hasPublicationYear "1998" @default.
• W1497262011 type Work @default.
• W1497262011 sameAs 1497262011 @default.
• W1497262011 citedByCount "17" @default.
• W1497262011 countsByYear W14972620112014 @default.
• W1497262011 countsByYear W14972620112015 @default.
• W1497262011 crossrefType "journal-article" @default.
• W1497262011 hasAuthorship W1497262011A5016406163 @default.
• W1497262011 hasAuthorship W1497262011A5048893179 @default.
• W1497262011 hasAuthorship W1497262011A5050838493 @default.
• W1497262011 hasAuthorship W1497262011A5087290210 @default.
• W1497262011 hasConcept C10138342 @default.
• W1497262011 hasConcept C111472728 @default.
• W1497262011 hasConcept C11171543 @default.
• W1497262011 hasConcept C121955636 @default.
• W1497262011 hasConcept C138885662 @default.
• W1497262011 hasConcept C144133560 @default.
• W1497262011 hasConcept C149782125 @default.
• W1497262011 hasConcept C151392489 @default.
• W1497262011 hasConcept C15744967 @default.
• W1497262011 hasConcept C162324750 @default.
• W1497262011 hasConcept C2777487392 @default.
• W1497262011 hasConcept C2778083465 @default.
• W1497262011 hasConcept C2780023022 @default.
• W1497262011 hasConcept C2781426361 @default.
• W1497262011 hasConcept C39389867 @default.
• W1497262011 hasConceptScore W1497262011C10138342 @default.
• W1497262011 hasConceptScore W1497262011C111472728 @default.
• W1497262011 hasConceptScore W1497262011C11171543 @default.
• W1497262011 hasConceptScore W1497262011C121955636 @default.
• W1497262011 hasConceptScore W1497262011C138885662 @default.
• W1497262011 hasConceptScore W1497262011C144133560 @default.
• W1497262011 hasConceptScore W1497262011C149782125 @default.
• W1497262011 hasConceptScore W1497262011C151392489 @default.
• W1497262011 hasConceptScore W1497262011C15744967 @default.
• W1497262011 hasConceptScore W1497262011C162324750 @default.
• W1497262011 hasConceptScore W1497262011C2777487392 @default.
• W1497262011 hasConceptScore W1497262011C2778083465 @default.
• W1497262011 hasConceptScore W1497262011C2780023022 @default.
• W1497262011 hasConceptScore W1497262011C2781426361 @default.
• W1497262011 hasConceptScore W1497262011C39389867 @default.
• W1497262011 hasLocation W14972620111 @default.
• W1497262011 hasOpenAccess W1497262011 @default.
• W1497262011 hasPrimaryLocation W14972620111 @default.
• W1497262011 hasRelatedWork W2052812770 @default.
• W1497262011 hasRelatedWork W2083043864 @default.
• W1497262011 hasRelatedWork W2108735410 @default.
• W1497262011 hasRelatedWork W2139616608 @default.
• W1497262011 hasRelatedWork W2259610264 @default.
• W1497262011 hasRelatedWork W2360083531 @default.
• W1497262011 hasRelatedWork W3123470588 @default.
• W1497262011 hasRelatedWork W3125493961 @default.
• W1497262011 hasRelatedWork W3125575246 @default.
• W1497262011 hasRelatedWork W3126121099 @default.
• W1497262011 isParatext "false" @default.
• W1497262011 isRetracted "false" @default.
• W1497262011 magId "1497262011" @default.
• W1497262011 workType "article" @default.