CEO Compensation and Earnings Management

This paper examines the effects of CEO compensation package on earnings quality. I find that the proportions of restricted stocks and stock options in CEO compensation are significantly and negatively related to earnings quality. I do not find any evidence that salary and bonus payments have signifi...

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Bibliographic Details
Main Author: Zhang, Jun
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/46051/
Description
Summary:This paper examines the effects of CEO compensation package on earnings quality. I find that the proportions of restricted stocks and stock options in CEO compensation are significantly and negatively related to earnings quality. I do not find any evidence that salary and bonus payments have significant effect on earnings quality. My research results also indicate that firm size, Z-score, ROA all have significant relationships with earnings quality. Larger firm size and Z-score will decrease earnings quality, while higher ROA will increase earnings quality.