| Author: | Zhao, Yuan |
| Title: | The impact of mandatory disclosure on CFO compensation and accounting conservatism |
| Advisors: | Zhang, Yong (AF) |
| Degree: | M.Sc. |
| Year: | 2018 |
| Subject: | Hong Kong Polytechnic University -- Dissertations Chief executive officers -- Salaries, etc Disclosure of information Corporations -- Finance Corporations -- Accounting |
| Department: | School of Accounting and Finance |
| Pages: | 53 pages : color illustrations |
| Language: | English |
| Abstract: | Treating the Securities and Exchange Commission (SEC) "Executive compensation and related person disclosure" of 2006 as the empirical setting, this paper examines the impact of mandatory compensation disclosure on CFO compensation and accounting conservatism. The mandatory CFO compensation disclosure engenders two opposing outcomes. This paper reveals that CFO compensation exhibits a significantly upward trend, except for those large firms which exert greater effort in corporate governance. However, this paper does not present a causal effect between firm size and corporate governance. The results are merely suggestive of a possible managerial pattern which large corporations may follow. It is worth pointing out that the overstatement of undisclosed CFO compensation before 2006 may conceal growing CFO payments, since the fifth largest management compensation is used as a substitute. CEO compensation exhibits a similar compensation change pattern, but its magnitude is smaller and less significant. Furthermore, it is expected that SEC 2006 "Executive compensation and related person disclosure" increases the risk of litigation as well as conflicts between management and shareholders. The findings suggest that mandatory compensation disclosure does not affect accounting conservatism on average. On the contrary, large firms exhibit greater demand for accounting conservatism, so as to protect shareholder interests and reduce agency costs. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 991022144623903411.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 511.04 kB | Adobe PDF | View/Open |
Copyright Undertaking
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item:
https://theses.lib.polyu.edu.hk/handle/200/9576