Paper Information

Journal:   MANAGEMENT ACCOUNTING   FALL 2014 , Volume 7 , Number 22; Page(s) 21 To 34.
 
Paper: 

ACCOUNTING CONSERVATISM AND EXECUTIVE COMPENSATION

 
 
Author(s):  BANIMAHD BAHMAN, MORADZADEHFARD MAHDI, VALIKHANI MOHAMMAD JAFAR
 
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Abstract: 

According to positive accounting research, accounting conservatism as an efficient contracting mechanism can restrict the opportunistic behavior of management in overstating executive compensation. Hence, This study investigates the relationship between accounting conservatism and executive compensation in the 120 listed firms of Tehran Stock Exchange (TSE) during a 9-year period from 2004-2012. The research method is correlation and we use multiple regression to test hypotheses. The results of this study show that there is a negative and significant relation between accounting conservatism and executive compensation in sample study. Research evidence also show that firm size and profitability have a positive effect on executive compensation. Moreover, findings indicate that debt ratio and management change have no any relation with executive compensation.

 
Keyword(s): ACCOUNTING CONSERVATISM, EXECUTIVE COMPENSATION AND AGENCY THEORY
 
References: 
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