IDEAS home Printed from https://ideas.repec.org/a/usm/journl/aamjaf00802_111-127.html
   My bibliography  Save this article

Executive Compensation And Contract-Driven Earnings Management

Author

Listed:
  • Lan Sun

    (UNE Business School, Faculty of the Professions, University of New England, Australia NSW2351)

Abstract

Earnings management is found to be driven by different managerial incentives. Previous studies have identified that executive compensation contracts create incentives for earnings management. The agency theory and the positive accounting theory provide explanations for contract-driven earnings management. This study links the agency theory and the positive accounting theory and reviews the early executive compensation studies, bonus plan maximisation hypothesis and equity-based compensation. The aim of this study is to shed light in explaining contractual incentives and provide useful information in understanding the executive compensation contract-driven earnings management behaviour.

Suggested Citation

  • Lan Sun, 2012. "Executive Compensation And Contract-Driven Earnings Management," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 8(2), pages 111–127-1.
    • Handle: RePEc:usm:journl:aamjaf00802_111-127
    as

    Download full text from publisher

    File URL: http://web.usm.my/journal/aamjaf/vol8-2-2012/AAMJAF8-2-2012(111-127).pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hiren Patel, 2021. "Target Price Achievement and Target Price Accuracy Models: An Analysis of Advisory Firms’ Recommendation for the Indian Banking Stocks," Global Business Review, International Management Institute, vol. 22(2), pages 459-473, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usm:journl:aamjaf00802_111-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journal Division, Penerbit Universiti Sains Malaysia (email available below). General contact details of provider: https://edirc.repec.org/data/aammmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.