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Record W1590683348

Earnings distortion and CEO compensation

2006· book· en· W1590683348 on OpenAlexaff
Yibin Zhou

Bibliographic record

VenueTSpace · 2006
Typebook
Languageen
FieldBusiness, Management and Accounting
TopicAuditing, Earnings Management, Governance
Canadian institutionsUniversity of Toronto
Fundersnot available
KeywordsEarnings response coefficientDistortion (music)EarningsExecutive compensationStock (firearms)EconometricsAccountingEarnings managementPrincipal–agent problemMeasure (data warehouse)Compensation (psychology)EconomicsBusinessMicroeconomicsFinanceCorporate governanceComputer scienceIncentive
DOInot available

Abstract

fetched live from OpenAlex

This thesis tests multitask agency theory in which the agent has multi-dimensional tasks and both an undistorted and a distorted performance measure are available for contracting. Accounting earnings is modeled as a distorted performance measure and stock returns as a relatively undistorted measure. First, I demonstrate that the marginal products of CEOs' earnings management actions with respect to accounting earnings, in general, are not equal to the marginal products of their earnings management actions with respect to stock returns. In doing so, I provide evidence in support of the hypothesis that accounting earnings is a distorted performance measure because of CEOs' earnings management actions. This distortion measure is then used to investigate cross-sectional variation in the relative sensitivity of CEO compensation to accounting earnings. I find that the weight placed on accounting earnings relative to stock returns in CEO compensation decreases as earnings distortion increases. Overall, the results provide evidence consistent with multitask agency theory, which predicts that optimal compensation contracts put less weight on the distorted performance measure as its distortion increases in order to improve the efficiency of CEOs' effort allocation across tasks.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMeta-epidemiology (narrow), Insufficient payload (model declined to judge)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: Not applicable
GenreCandidate signal: Other · Consensus signal: Other
Teacher disagreement score0.052
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.010
GPT teacher head0.222
Teacher spread0.213 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designNot applicable
Domainnot available
GenreOther

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2006
Admission routes1
Has abstractyes

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