英文摘要 |
The present study investigates the effect of directors’ profit sharing remuneration on the quality of earnings-timely recognition of economic losses. Conservatism manifested by the differential speed in the recognition of economic gains and losses could counteract managers’ incentives to overstate firm performance and mitigate the agency problem between management and shareholders. As directors’ pay is directly tied to bottom-line earnings, we find that firms with higher directors’ remuneration are associated with less conservative earnings after controlling for leverage, firm growth and corporate governance structure. |