CEO turnover and properties of accounting information

• 成果类型: Article
• 署名作者: Engel, E; Hayes, RM; Wang, X
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2003.08.001
• 发表日期: 2003
• 关键词: executive-compensation; Performance evaluation; prices; DIRECTORS; earnings; pay

摘要

Multiple-performance-measure agency models predict that optimal contracts should place greater reliance on performance measures that are more precise and more sensitive to the agent's effort. We apply these predictions to CEO retention decisions. First, we develop an agency model to motivate proxies for signal and noise in firm-level performance measures. We then document that accounting information appears to receive greater weight in turnover decisions when accounting-based measures are more precise, and more sensitive. We also present evidence suggesting that market-based performance measures receive less weight in turnover decisions when accounting-based measures are more sensitive or market returns are more variable. (C) 2003 Elsevier B.V. All rights reserved.