Notice of RetractionA research framework on effect of executive compensation on firm performance: Managerial discretion and monitoring intensity as the antecedents

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

With the recent fierce development of financial crisis, more and more theorists and practitioners have focused on both the excessively high executive compensation and the inversed relation between executive compensation and firm performance, which shows that the principal-agent theory can not explain the determining mechanism of executive compensation any more. By adopting the emerging managerial discretion approach, the paper constructs a research framework on the relationship among executive compensation, managerial discretion, monitoring intensity and firm performance, in which managerial discretion and monitoring intensity are taken as the exogenous antecedents, and executive compensation is taken as the independent variable, and firm performance is taken as the endogenous dependent variable. According to the framework, some research hypothesizes worthy of further studying are provided.