Segment disaggregation and equity-based pay contracts

IF 3.2 3区 管理学 Q1 BUSINESS, FINANCE
Young Jun Cho, Hojun Seo
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引用次数: 0

Abstract

We study the role of segment disaggregation in equity-based pay contracts in diversified firms. Disaggregated segment disclosures can improve the observability of managerial actions in internal capital markets and thus increase implicit incentives for managers to allocate resources as desired by shareholders, substituting for explicit incentives provided to CEOs. We use the adoption of Statement of Financial Accounting Standards No. 131 as an identification strategy and find that firms affected by this segment reporting mandate significantly decreased the provision of equity-based incentives in the post-adoption period, especially for firms with higher operating volatilities. This effect is also more pronounced for firms with weaker board monitoring in the pre-adoption period but with stronger external monitoring in the post-adoption period. Overall, our results suggest that disaggregated segment disclosures reduce the use of equity-based pay contracts in diversified firms by enhancing the monitoring of managers.

分部分类和股权薪酬合同
我们研究了在多元化企业中,分部分类在基于股权的薪酬合同中的作用。分类披露可以提高内部资本市场对管理者行为的可观察性,从而增加管理者按照股东期望分配资源的隐性激励,替代对首席执行官的显性激励。我们将《财务会计准则第 131 号》的采用作为一种识别策略,并发现受这一分部报告规定影响的公司在采用后显著减少了股权激励的提供,尤其是对于经营波动性较大的公司。对于在采用前董事会监督较弱,但在采用后外部监督较强的公司,这种影响也更为明显。总体而言,我们的研究结果表明,通过加强对管理者的监督,分类披露可以减少多元化企业中基于股权的薪酬合同的使用。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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