Executive equity risk-taking incentives and audit pricing
Data(s) |
01/11/2015
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Resumo |
Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman of the board. Collectively, our results suggest that audit firms incorporate executive risktaking incentives in the fees they charge for their services. |
Identificador | |
Idioma(s) |
eng |
Publicador |
American Accounting Association |
Relação |
http://dro.deakin.edu.au/eserv/DU:30081738/gul-executiveequity-2015.pdf http://www.dx.doi.org/10.2308/accr-51046 |
Direitos |
2015, American Accounting Association |
Palavras-Chave | #Social Sciences #Business, Finance #Business & Economics #executive compensation #audit fees #vega #misreporting #SOX #CLIENT-ACCEPTANCE DECISIONS #EARNINGS MANAGEMENT #LITIGATION RISK #STOCK-OPTIONS #CORPORATE GOVERNANCE #CLAWBACK PROVISIONS #FIRM PERFORMANCE #BUSINESS RISK #FEES #QUALITY |
Tipo |
Journal Article |