scholarly journals PROTOCOL: Does executive compensation predict publicly traded firms’ financial performance or inaccurate financial reporting?

2019 ◽  
Vol 15 (4) ◽  
Author(s):  
Denise M. Rousseau ◽  
Donna Beck ◽  
ByeongJo Kim ◽  
Ryan Splenda ◽  
Sarah Young
Keyword(s):  
Financial Performance ◽  
Executive Compensation ◽  
Financial Reporting ◽  
Publicly Traded ◽  
Publicly Traded Firms

scholarly journals The Impact of Corporate Governance on Stock Price and Trade Volume

2016 ◽  
Vol 6 (2) ◽  
pp. 27 ◽  
Author(s):  
Wafaa Salah Mohamed ◽  
May M. Elewa
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Prices ◽  
Stock Price ◽  
Trading Volume ◽  
Stock Exchange ◽  
Trade Volume ◽  
Publicly Traded ◽  
Publicly Traded Firms ◽  
The Impact

The purpose of this paper is to investigate whether corporate governance is associated with stock prices and trade volume for 62 publicly traded firms on the Egyptian Stock Exchange during 2007-2014. The authors hypothesize that firms with strong corporate governance have a significant impact on stock prices and trade volume. To examine the associations, a multiple regression analysis is used. Consistent with the first hypothesis, this study finds firms with strong corporate governance have a significant impact on stock prices while has no significant impact on trade volume. Findings indicate that quality of corporate governance can affect firms' stock price while trading volume is not affected by the strength of corporate governance. The results suggest that Egyptian firms should improve their corporate governance as it has a significant effect on firms’ value. Also, providing diverse sources of financial information other than the financial statements and to ensure the presence of high-quality financial reporting and strong investor protection. This study is carried on non-financial firms only. This research is important to regulators and standard setters as it shows the information that affects investors’ decisions and the importance of its disclosure. It pays attention of standard setters for setting a corporate governance framework for improving the level of disclosures of publicly traded firms in Egypt.

scholarly journals The Influence of Auditor Quality and Executive Compensation Structure on Financial Reporting Executives' Restatement Decisions in a Clawback Environment

2019 ◽  
Vol 13 (1) ◽  
pp. P28-P36
Author(s):  
Jonathan S. Pyzoha ◽  
J. Gregory Jenkins
Keyword(s):  
Executive Compensation ◽  
Financial Reporting ◽  
Research Method ◽  
Financial Statements ◽  
Unintended Consequence ◽  
Publicly Traded ◽  
Compensation Structure ◽  
Publicly Traded Companies ◽  
Auditor Quality ◽  
Practical Implications

SUMMARY Based on a recent SEC proposal, publicly traded companies will be required to adopt a clawback in accordance with the Dodd-Frank Act. In response, firms have been voluntarily adopting clawbacks at an increasing rate. Prior research finds one benefit of voluntarily adopting a clawback is a decrease in restatements. A recent study by Pyzoha (2015) uses an experiment to further investigate restatements in a clawback environment by studying executives' restatement decisions based on auditor quality and executive compensation structure. Results show there may be an unintended consequence of clawbacks that partially offsets the aforementioned benefit. The study finds executives are less likely to agree with restating financial statements when their pay consists of a higher percentage of incentives and there is a lower quality auditor. Importantly, the study shows this tendency is reduced with a higher quality auditor. This article summarizes the study's motivation, research method, results, and practical implications.

Governance and corporate control in the United States

2021 ◽  
Vol 3 (2) ◽  
pp. 41-52
Author(s):  
Karen M. Hogan ◽  
Gerard T. Olson
Keyword(s):  
United States ◽  
Financial Performance ◽  
Institutional Investors ◽  
The United States ◽  
Pension Plans ◽  
Top Management Teams ◽  
Defined Contribution ◽  
Publicly Traded ◽  
Publicly Traded Firms ◽  
The U.S

This paper provides an overview of business entities in the United States. We analyze current trends in the ownership structures of U.S. firms, diversity and inclusion, mergers and acquisitions, minority shareholder rights protections, and review the literature related to corporate ownership and financial performance. With the shift in the U.S. from defined benefit pension plans to defined contribution plans and a desire for increased corporate governance, we observe a significant increase in the financial assets under management by large institutional investors. It is believed these large institutional investors can have a significant impact on the governance, decision-making, and performance of the U.S. publicly traded firms. We observe an increasing trend in foreign indirect investment in the U.S. from countries in Europe, Asia and the Pacific Rim, North and South America, the Middle East, and Africa. Additionally, increased compensation of publicly traded firms’ top executives is shown, which has resulted in an increased disparity between the compensation of top management teams and the firms’ hourly employees. Lastly, we expect the suggested bias against women and other minorities, as evidenced here, will be lessened in the future and should result in improved financial performance for firms

CEO Bonus Pay, Tax Policy, and Earnings Management

2002 ◽  
Vol 24 (s-1) ◽  
pp. 1-23 ◽  
Author(s):  
Austin Reitenga ◽  
Steve Buchheit ◽  
Qin Jennifer Yin ◽  
Terry Baker
Keyword(s):  
Financial Performance ◽  
Executive Compensation ◽  
Financial Reporting ◽  
Tax Policy ◽  
Executive Pay ◽  
Compensation Plans ◽  
Bonus Pay ◽  
Compensation Plan ◽  
Reported Earnings ◽  
Low Pay

In 1993, Congress passed Internal Revenue Code Section 162(m), which eliminated the tax deductibility of nonperformance-based executive compensation over $1 million. Recent research indicates that, as intended, Code Section 162(m) has strengthened the link between executive pay and firm performance. Although 162(m) apparently has changed executive compensation in a way desired by Congress, we hypothesize that 162(m) has indirectly influenced the financial-reporting process. Specifically, we hypothesize and find evidence to support the following: for numerous reasons associated with “qualifying” a compensation plan per Code Section 162(m), executives in firms that qualify their compensation plans receive relatively low pay when their firm's financial performance is extreme. Because these executives receive relatively low pay for extreme financial performance, an incentive exists to smooth reported earnings over time in order to maximize long-term compensation. The relatively smooth earnings patterns that we observe in qualified firms are related to the use of discretionary accruals. Our results appear robust to alternative sampling and modeling techniques. As such, our evidence suggests that a tax policy designed to curb allegedly excessive executive compensation has indirectly affected the quality of reported earnings.

ANALISIS FAKTOR PENENTU KOMPENSASI EKSEKUTIF DAN HUBUNGAN KOMPENSASI EKSEKUTIF DENGAN KINERJA PERUSAHAAN

2013 ◽  
Vol 11 (3) ◽  
Author(s):  
Dyan Vidyatmoko ◽  
Bunasor Sanim ◽  
Hermanto Siregar ◽  
M. Said Didu
Keyword(s):  
Financial Performance ◽  
Executive Compensation ◽  
Structural Equation ◽  
Equation Model ◽  
Product Diversification ◽  
Learning Performance ◽  
Market Area ◽  
Job Complexity ◽  
Positive Correlation ◽  
Volume Output

The objectives of this research were (1) to analyse determinants of the influencing factors of the Indonesian Estate State-owned enterprises’ executive compensations; and (2) to analyse the relationship between compensation executive and firm performances. Statistical methods used for analysing these objectives were Structural Equation Model (SEM), contingency analysis, regresion analysis and qualitative analysis. The study found out that from all identified variables, executive decision mechanism, job complexity, firm size, firm ability to pay compensation, and product diversification and market expansionhad positive correlation and significant influenced to executive compensation. Human capital, business risk, executive employment market had significant correlations to executive compensation. The research had also shown a result that executive compensation provide positive correlation and significant influence towards financial performance (EBIT), customer performance (sales volume, output price, market area), internal process performance (OER target, OER realisation), and growth and learning performance (number of training investment, number of employees participated intraining). However, executive compensation did not give positive correlation and significant influenced towards financial performance (ROE) and customer performance(market share). This research also showed that direction of executive compensation was heading to company’s performance and not the opposite way.

Performance Sports Group: To Invest or Not to Invest

2017 ◽  
Vol 6 (1) ◽  
pp. 76-85
Author(s):  
Erin P. Jackson ◽  
Stefania Ciulla ◽  
Frederik Ehlen ◽  
Ayobami Ogunlana ◽  
Jess C. Dixon
Keyword(s):  
New York ◽  
Financial Performance ◽  
Parent Company ◽  
Financial Ratios ◽  
Stock Exchanges ◽  
Industry Analysis ◽  
Publicly Traded ◽  
Sporting Goods ◽  
Financial Analyses

In August of 2015, Felix Farmer received notice that he would be inheriting a large sum of money from his great-uncle’s will. Farmer is contemplating investing $50,000 CAD ($38,251 USD) of his inheritance in the parent company of his favorite hockey brand, Bauer. Performance Sports Group (PSG) is a leading manufacturer in the global sporting goods industry that is publicly traded on both the Toronto and New York Stock exchanges, and the parent of such highly successful brands as Bauer and Easton. This case study challenges students to calculate financial ratios, apply various other financial analyses to understand the financial performance of PSG, and complete a Porter’s (2008) Five Forces industry analysis as a means of deciding whether Farmer should invest a portion of his inheritance with PSG.

Economic Network of Publicly-Traded Firms

2012 ◽  
Author(s):  
Gennaro Bernile ◽  
George M. Korniotis ◽  
Alok Kumar
Keyword(s):  
Publicly Traded ◽  
Publicly Traded Firms
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