The effect of missing a quarterly earnings benchmark on the CEO's annual bonus

被引：264

作者：

Matsunaga, SR ^{[1
]}

Park, CW

机构：

[1] Univ Oregon, Eugene, OR 97403 USA

[2] Hong Kong Univ Sci & Technol, Hong Kong, Hong Kong, Peoples R China

来源：

ACCOUNTING REVIEW | 2001年 / 76卷 / 03期

关键词：

executive compensation; quarterly earnings benchmark; earnings management;

D O I：

10.2308/accr.2001.76.3.313

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We investigate the effects of missing quarterly earnings benchmarks on the CEO's annual bonus. After controlling for the general pay-for-performance relation, we find a significant incremental adverse effect on CEO annual cash bonuses when the firm's quarterly earnings fall short of the consensus analyst forecast or the earnings for the same quarter of the prior year, for at least two quarters during the year. However, we find that the relation between the bonus and the number of loss; quarters is not significant. Our results suggest that CEO bonus payments provide CEOs with economic incentives to meet quarterly analyst earnings forecasts and earnings from the same quarter of the prior year.

引用

页码：313 / 332

页数：20

共 31 条

[1] The explanatory power of earnings levels vs. earnings changes in the context of executive compensation [J].