Dissertation > Excellent graduate degree dissertation topics show

Accounting Conservatism and Executive Compensation-performance Sensitivity

Author: HanShuChang
Tutor: CuiXueGang
School: Beijing Technology and Business University
Course: Accounting
Keywords: Accounting Conservatism Executive Compensation Corporate performance
CLC: F272
Type: Master's thesis
Year: 2010
Downloads: 171
Quote: 0
Read: Download Dissertation

Abstract


After the financial crisis, people pay more attention to the executive compensation contract. management usually possesses the information superiority compared to outside investors, which makes it possible that, management has the incentives to pursue a higher compensation for their own benefit by attempting to disclose unrealized profits and conceal potential losses. Accounting conservatism plays an important role in mitigating the overestimating assets and profits, motivating management to react correspondently to economic losses as soon as possible, and enhancing the executive compensation-performance sensitivity.To begin, this paper reviews and summarizes prior literature and discusses, then points out the question this paper tries to solve. Next it conducts theoretic analysis on the accounting conservatism and executive compensation-performance sensitivity. And using financial data of A-share Chinese listed companies from 2001 to 2008, we calculate the coefficient of conservatism according to BASU model. Further we rank, screen out, by conservatism, the first 25% as the high- conservatism group and the last 25% as the low conservatism group, and we present empirical evidence upon the effect of accounting conservatism on executive compensation contract through grouped regression by using the cross-sectional data from 2005 to 2008 of these two groups as research samples. We find: (1) The compensation-performance sensitivity is higher in the listed company with higher accounting conservatism; (2) The sensitivity of compensation to earnings is higher than the sensitivity of compensation to losses, but accounting conservatism can significantly decrease the asymmetric sensitivity of compensation between earnings and losses; (3) the promotion of accounting conservatism on executive compensation contract is more significant in state-owned enterprises. This paper demonstrates the important role of accounting conservatism in decreasing information asymmetry and agency cost between the shareholders and management from the angle of investor protection.

Related Dissertations

  1. Research on the Impact of Debt Financing Structure Upon Corporate Performance on Listed Pharmaceutical Company,F275
  2. Ownership Structure and Corporate Performance,F276.6;F224
  3. Board of Directors endogenous perspective of the CEO pay and performance of the company,F272.92;F276.6
  4. Relationship management equity incentive , equity structure and corporate performance,F276.6;F224
  5. Effectiveness of internal governance of listed companies,F224
  6. Study of Influence of Reformation of Stock Separation on List Company Performance in China,F276.6;F224
  7. An Empirical Research on the Relationship between China’s Listed Realty Company Corporate Performance and Govern Structure,F293.3;F276.6
  8. Empirical Study of Senior Management Compensation, Equity Incentive and Corporate Performance,F224
  9. Astudy on the Correlation of China’s SME Board Listed Companies’ Executive Pay and Corporate Performance,F272
  10. An Empirical Study on Disclosure Quality and Corporate Performance,F224
  11. An Empirical Study on the Performance Impact of the Family Business as the Largest Shareholder,F224
  12. An Empirical Research on Influencing Factors of Executive Compensation of Listed Companies,F272
  13. The Research on the Accounting Conservatism’s Influence on Financing Cost,F275
  14. Legal regulation of state-controlled listed companies on executive pay,D922.291.91
  15. The Study on Legal Regulation of Executive Compensation of Listed Company,D922.291.91
  16. The Research into the Impact of Corporate Governance on the Accounting Conservatism,F233
  17. Study on the Relationship of Ownership Structure, Executive Compensation and Effectiveness of Internal Control,F272;F224
  18. The Empirical Study on Seasoned Equity Offerings and Corporate Long-run Performance in Chinese Listed Companies,F832.51
  19. Study on the Relationship between Corporate Entrepreneurship and Corporate Performance based on Structural Equation Model Theory,F224
  20. An Empirical Study on Relationship between Institutional Investors’ Stockholding and Population Characteristic of Top Management Team,F272
  21. Empirical Study on the Impact of Entrepreneurial Competency on Corporate Performance,F272.91

CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making
© 2012 www.DissertationTopic.Net  Mobile