An empirical examination of the relation between debt contracts and management incentives

Article Abstract:

Both single-stage and two-stage estimation techniques were used to investigate the relation between debt contracts and management incentives. The four incentive variables considered are the CEO's cash compensation, CEO stock wealth, CEO stock wealth/compensation ratio and the CEO ownership fraction. The debt contracts were found to have a significant negative relation to the four incentive variables. Results of two-stage simultaneous equations models showed that only the CEO ownership fraction was significant.

Author: Feltham, Gerald A., Begley, Joy
Publisher: Elsevier B.V.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 1999
Debt financing (Corporations), Debt financing

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A contracting perspective on earnings quality

Article Abstract:

The impact of autocorrelation on a single performance measure in incentive contracting and on optimal incentive rates in contract renegotiation is discussed.

Author: Christensen, Peter O., Feltham, Gerald A.
Publisher: Elsevier B.V.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2005
Canada, Denmark, British Columbia, Usage, Negotiation, mediation and arbitration, Statistical methods

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Dynamic incentives and responsibility accounting: a comment

Article Abstract:

The article rebuts an earlier study finding that lack of management incentives does not necessarily relate directly to poor company performance.

Author: Christensen, Peter O., Feltham, Gerald A., Sabac, Florin
Publisher: Elsevier B.V.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2003
Science & research, Personnel administration, Research

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Subjects list: Analysis, Compensation and benefits, Executives, Executive compensation, Incentives (Business)
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