2016 Fiscal Year Final Research Report
The role of accounting information in the design of management compensation contract
| Project/Area Number |
26380634
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Kansai University |
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Principal Investigator |
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| Project Period (FY) |
2014-04-01 – 2017-03-31
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| Keywords | 経営者報酬契約 / 会計利益 / 予想利益 |
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| Outline of Final Research Achievements |
Although specific contents of management compensation contracts are implicit in Japan, the design of the contracts is likely to influence management action and firm performance. In the realization of efficient incentive system, it is important to determine the measures to evaluate performance of management.
This study investigates whether and how Japanese firms use management earnings forecasts as a performance target for determining management cash compensation. Consistent with the implications of the agency theory, we find that the sensitivity of management cash compensation varies with the extent to which realized earnings exceed initial management forecasts.
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| Free Research Field |
実証会計研究
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