The relationship between research & development expenditure and executive compensation in high-technology industries

Article Abstract:

Keywords: Accounting research, R&D, Pay, Executives, High technology, USA This study hypothesizes a positive relationship between research and development (R&D) expenditure and executive compensation in high-technology industries. This hypothesis is based on the organization science theory which argues that managers will become more risk averse and avoid investments in risky projects, such as R&D, if their compensation is solely tied to the firms' financial performance such as reported earnings. A regression analysis is conducted for the full sample, for each industry (pharmaceutical and computer) and for three separate time periods. Regression results strongly support the hypothesis. This study contributes to the literature on executive compensation by identifying a compensation scheme which employs another financial variable, i.e., research and development expenditure, in addition to earnings.

United States, Research, Finance

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Application of Dimson type models in emerging markets: the case of the Athens Stock Exchange

Article Abstract:

A study of the activity on the Athens Stock Exchange between 1993 and 1997 is completed using the Dimson type models rather than a simple market model. The intense activity of this stock market during this time period was more clearly illustrated through the use of Dimson type models.

Greece, Securities and Commodity Exchanges, Security and commodity exchanges, Misc Stock Exchanges, Statistical Data Included, Management, Case studies, Stock-exchange, Stock exchanges, Securities industry, Athens Exchange S.A.

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