英文摘要 |
This study examines the use of relative performance evaluation (RPE) and whetherfirm life cycle stages affect the use of RPE. Prior empirical research still offers mixedevidence on the use of RPE in top managers’ compensation because of rough industrialclassification. Accordingly, we re-test the RPE argument by more precise industrialclassification. We find that top managers’ total compensation exhibits little use ofRPE. However, RPE is more prevalent for top managers’ profit sharing schemes. Theexplanation is that firms can incorporate peer performance to decide top managers’ bonusat the end of the period and past peer performance have influenced top managers’ fixedsalary set at the beginning of the year. In addition, we find that firm In growth and declinestages, there is little evidence concerning the use of RPE in cash bonus. Conversely, RPEis used in determining top managers’ cash bonus for firms in maturity stage because ofmore industrial competition. |