The Library
IFRS and the use of accounting-based performance measures in executive pay
Tools
Voulgaris, Georgios, Stathopoulos, Konstantinos and Walker, Martin (2014) IFRS and the use of accounting-based performance measures in executive pay. The International Journal of Accounting , 49 (4). pp. 479-514. doi:10.1016/j.intacc.2014.10.001 ISSN 1094-4060 .
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1016/j.intacc.2014.10.001
Abstract
We examine the effect of IFRS (International Financial Reporting Standards) on the type of performance measures firms use to evaluate and reward their managers. We show that post-IFRS firms decrease the weight of Earnings-per-Share (EPS)-based performance measures in CEO pay contracts. We argue that IFRS add “noise” to accounting numbers which, based on optimal contracting theory, makes reported earnings less useful for evaluating managerial performance. Our findings suggest that while under IFRS accounting earnings could be more informative for valuation purposes, this might be achieved at the expense of other purposes that accounting serves, i.e., stewardship/performance contracting.
Item Type: | Journal Article | ||||||||
---|---|---|---|---|---|---|---|---|---|
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
||||||||
Divisions: | Faculty of Social Sciences > Warwick Business School > Accounting Faculty of Social Sciences > Warwick Business School |
||||||||
Journal or Publication Title: | The International Journal of Accounting | ||||||||
Publisher: | Pergamon Press | ||||||||
ISSN: | 1094-4060 | ||||||||
Official Date: | 31 October 2014 | ||||||||
Dates: |
|
||||||||
Volume: | 49 | ||||||||
Number: | 4 | ||||||||
Page Range: | pp. 479-514 | ||||||||
DOI: | 10.1016/j.intacc.2014.10.001 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |