• DOI:10.1016/0165-4101(96)00421-1
Corpus ID: 53638361

Investment opportunities and the structure of executive compensation

@article{Baber1996InvestmentOA,
  title={Investment opportunities and the structure of executive compensation},
  author={William R. Baber and S. Janakiraman and Sok-Hyon Kang},
  journal={Journal of Accounting and Economics},
  year={1996},
  volume={21},
  pages={297-318}
}

William R. Baber, S. Janakiraman, Sok-Hyon Kang

Published 1996

Business

Journal of Accounting and Economics

We extend the contracting paradigm advanced in Smith and Watts (1992) to consider cross-sectional associations between investment opportunities and the sensitivity of CEO compensation to performance measures. We predict stronger associations between compensation and performance for firms with greater investment opportunities. We also predict greater use of market-based, rather than accounting-based, performance indicators as a basis for incentive payments when investment opportunities are… CONTINUE READING

View via Publisher

leeds-faculty.colorado.edu

Save to Library

Create Alert

Cite

Launch Research Feed