Persistent Link:
http://hdl.handle.net/10150/146591
Title:
CEO Cash Compensation and Earnings Quality
Author:
Chen, Zhimin
Issue Date:
May-2010
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
I examine the uses of accounting performance measures by testing the association between CEO cash pay sensitivity and earnings quality. I assume that the valuation and evaluation uses of accounting information are linked through the information risk. I expect to find that the sensitivities of CEO cash compensation to accruals and cash flows are associated with accrual quality and cash flow persistence. I find that there is a significant positive relation between accrual quality and CEO cash pay sensitivity to earnings. I find no association between the asymmetric pay-sensitivity to stock returns and earnings quality, and no relation between persistence to pay sensitivity to earnings. This research extends the accounting literature on earnings quality. This research also leads to the discussion of one of the problems of CEO compensation contracting since there appears to be no evidence showing that CEO receives incentives for reporting high quality earnings information and penalties for reporting low quality earnings information.
Type:
text; Electronic Thesis
Degree Name:
B.S.
Degree Level:
bachelors
Degree Program:
Honors College; Accounting
Degree Grantor:
University of Arizona

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleCEO Cash Compensation and Earnings Qualityen_US
dc.creatorChen, Zhiminen_US
dc.contributor.authorChen, Zhiminen_US
dc.date.issued2010-05-
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractI examine the uses of accounting performance measures by testing the association between CEO cash pay sensitivity and earnings quality. I assume that the valuation and evaluation uses of accounting information are linked through the information risk. I expect to find that the sensitivities of CEO cash compensation to accruals and cash flows are associated with accrual quality and cash flow persistence. I find that there is a significant positive relation between accrual quality and CEO cash pay sensitivity to earnings. I find no association between the asymmetric pay-sensitivity to stock returns and earnings quality, and no relation between persistence to pay sensitivity to earnings. This research extends the accounting literature on earnings quality. This research also leads to the discussion of one of the problems of CEO compensation contracting since there appears to be no evidence showing that CEO receives incentives for reporting high quality earnings information and penalties for reporting low quality earnings information.en_US
dc.typetexten_US
dc.typeElectronic Thesisen_US
thesis.degree.nameB.S.en_US
thesis.degree.levelbachelorsen_US
thesis.degree.disciplineHonors Collegeen_US
thesis.degree.disciplineAccountingen_US
thesis.degree.grantorUniversity of Arizonaen_US
All Items in UA Campus Repository are protected by copyright, with all rights reserved, unless otherwise indicated.