An empirical examination of the relation between debt contracts and management incentives
Article Abstract:
Both single-stage and two-stage estimation techniques were used to investigate the relation between debt contracts and management incentives. The four incentive variables considered are the CEO's cash compensation, CEO stock wealth, CEO stock wealth/compensation ratio and the CEO ownership fraction. The debt contracts were found to have a significant negative relation to the four incentive variables. Results of two-stage simultaneous equations models showed that only the CEO ownership fraction was significant.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1999
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A contracting perspective on earnings quality
Article Abstract:
The impact of autocorrelation on a single performance measure in incentive contracting and on optimal incentive rates in contract renegotiation is discussed.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2005
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Dynamic incentives and responsibility accounting: a comment
Article Abstract:
The article rebuts an earlier study finding that lack of management incentives does not necessarily relate directly to poor company performance.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2003
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