Stock Market Information Production and Executive Incentives
作者： Qiang Kang , Qiao Liu
DOI: 10.2139/SSRN.687109
关键词:
摘要: This paper investigates the effect of stock market microstructure on managerial compensation schemes. We propose and empirically demonstrate that sensitivity chief executive officer's (CEO's) compensations to changes in stockholders' value is higher when facilitates production aggregation private or public information. Using trading data analysts' earnings forecast data, we construct five different measures information content prices. These measures, separately jointly, account for cross-sectional variations CEO pay-performance well. Our results are robust choice samples, incentive model specifications, estimation methods. extend analysis nonCEO executives teams find similar results.
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