Self‐sacrifice or empty symbolism: A study of $1 CEOs

IF 3.1 4区管理学 Q2 BUSINESS, FINANCE

Accounting and Finance Pub Date : 2023-10-10 DOI:10.1111/acfi.13183

Prabashi Dharmasiri, Mukesh Garg, Anthony Ng, Supardi Supardi

引用次数: 0

Abstract

Abstract We examine whether CEOs' voluntary acceptance of a $1 salary is a credible signal of sacrifice. We find that firms with $1 salary CEOs are: (i) more likely to be associated with income‐increasing accrual‐based earnings management; (ii) less likely to use real earnings management; and (iii) more likely to engage in corporate tax avoidance. Our results indicate that this performance enhancement is driven by the motivation to restore salaries to their original levels. Our results suggest that extreme salary sacrifice could indicate an empty promise to improve firm performance and should be considered cautiously by investors and regulators.

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自我牺牲还是空洞的象征:对1美元ceo的研究

摘要本文研究了ceo自愿接受1美元工资是否是一个可信的牺牲信号。我们发现，ceo薪酬为1美元的公司:(i)更有可能与收入增加的权责发生制盈余管理相关联;(ii)不太可能采用真实盈余管理;(三)更有可能参与企业避税。我们的研究结果表明，这种绩效提升是由工资恢复到原来水平的动机驱动的。我们的研究结果表明，极端的薪酬牺牲可能意味着提高公司绩效的空头承诺，投资者和监管机构应谨慎考虑。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounting and Finance BUSINESS, FINANCE-

CiteScore

5.10

自引率

7.70%

发文量

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