Self-serving behavior in managers' discretionary information disclosure decisions
Article Abstract:
The display of self-serving behavior by managers when making discretionary information production decisions is tested in discretionary information disclosure decisions, particularly in the common stock return performance comparisons that are required in corporate proxy statements. An observed downward bias in industry and peer-company stock return benchmarks reflects an overstatement of relative reporting-firm performance. The extent of the bias varies with important reporting-firm attributes, including company performance and the firm ownership structure's character.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Earnings and price-based compensation contracts in the presence of discretionary trading and incomplete contracting
Article Abstract:
A study was conducted on the use of reported earnings and prices as compensation measures of corporate performance when the firm manager is able to trade on private information. Results showed that the influence of reported earnings on the managerial contract depends on whether the price is based on observable information about the manager's efforts. It was also determined that the optimal weights in the managerial linear compensation contract do not vary in a monotonic and easily characterizable approach to changes in exogenous parameters.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Corporate responses to segment disclosure requirements
Article Abstract:
A multi-division incumbent firm's incentives to choose an accounting method and make supplementary disclosures in the presence of multiple users of the company's disclosures are discussed. The imposition of additional disclosure requirements may lead to a strict reduction of the incumbent's value-relevant disclosures, since the incumbent responds to the additional disclosure requirements by opting for an accounting method that masks proprietary information.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Devolved budgetary management in local government: lessons from a shire county. Strategic communication, budgetary role ambiguity, and budgetary response attitude in local government
- Abstracts: Producer prices in cotton markets: evaluation of reported price information accuracy. Empirical investigation of competition in Japan's raw cotton market: implications for US cotton exports
- Abstracts: Crosses to bear in mind. Rectangles worth waiting for
- Abstracts: China's feed grain market: development and prospects. Market efficiency of US grain markets: application of cointegration tests
- Abstracts: A contingent claims analysis of the interest rate risk characteristics of corporate liabilities. Face value convergence for stochastic bond price processes: a note on Merton's partial equilibrium option pricing model