ABSTRACT

We examine whether cross-firm comparability of earnings and operating cash flows influence the usefulness of earnings and cash flows in CEO compensation. We find that earnings (cash flow) comparability is positively associated with the compensation weight of earnings (cash flow) and negatively associated with the weight of cash flow (earnings), suggesting a substitution effect between earnings and cash flow measures. We also find that peer firms ‘stock returns get less negatively associated with CEO compensation as a firm’s earnings comparability increases, suggesting that the filtering role of stock return-based relative performance evaluation decreases as earnings comparability increases.

摘要

我们研究了跨公司的收益和经营现金流的可比性是否会影响收益和现金流在 CEO 薪酬中的有用性。我们发现，收益（现金流量）可比性与收益（现金流量）的薪酬权重正相关，与现金流量（收益）的权重负相关，表明收益和现金流量指标之间存在替代效应。我们还发现，随着公司盈利可比性的提高，同行公司的股票回报与 CEO 薪酬的负相关性降低，这表明基于股票回报的相对绩效评估的过滤作用随着盈利可比性的提高而降低。