DocumentCode :
3292460
Title :
Accounting Stability, Ownership Characteristics and the Effectiveness of Compensation Contract -- Empirical Study of 2007-2010 China Listed Companies
Author :
Bqin, Chen ; Tao, Li ; Ning, Liu
Author_Institution :
Finance & Accounting R&D Center, Chongqing Univ. of Technol., Chongqing, China
fYear :
2012
fDate :
July 31 2012-Aug. 2 2012
Firstpage :
161
Lastpage :
166
Abstract :
This paper studies the relationship between accounting stability and salary contract based on the contract theory. Our study shows that improvement in accounting conservatism increases the sensitivity of managers´ salary to return on accounting and also is correlated to market performance of the stock price. The sensitivity of management salary to return on accounting in state-owned enterprises increases with the strengthening of accounting stability , but the salary scheme is not related to share price; in non-state-owned enterprises, management salary is not linked to return on accounting, but is affected by the variance of share prices.
Keywords :
accounting; contracts; organisational aspects; salaries; China listed companies; accounting conservatism; accounting stability; compensation contract; contract theory; manager salary; market performance; ownership characteristics; salary contract; salary management; state-owned enterprises; stock price; Contracts; Correlation; Remuneration; Share prices; Stability criteria; Stock markets; accounting conservation; ownership structure; return on accounting; share price; usefulness of salary contract;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Digital Manufacturing and Automation (ICDMA), 2012 Third International Conference on
Conference_Location :
GuiLin
Print_ISBN :
978-1-4673-2217-1
Type :
conf
DOI :
10.1109/ICDMA.2012.39
Filename :
6298279
Link To Document :
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