The Impact of CEO' Compensation Incentive on the Future R&D Investment of the Company

2019 ◽  
Vol 33 (2) ◽  
pp. 193-210
Author(s):  
Seho Kwon ◽  
◽  
YoungJun Kim
2021 ◽  
Author(s):  
Clara Xiaoling Chen ◽  
Minjeong (MJ) Kim ◽  
Laura Yue Li ◽  
Wei Zhu

This study provides the first large-sample archival evidence on the impact of three commonly used accounting performance goals (thresholds, targets, and maximums) in CEO compensation contracts on corporate risk taking. Using proxy statement disclosure on performance goals for CEOs of U.S. public companies, we find that lower thresholds and higher maximums are associated with greater corporate risk taking, and these results are more pronounced when CEOs have greater incentives to achieve accounting performance goals or have lower innate risk aversion. In addition, we find that target difficulty is not significantly associated with corporate risk taking after controlling for thresholds and maximums. Finally, we find that CEO compensation contracts are more likely to have lower thresholds and higher maximums when risk taking is more value-enhancing or when R&D investment is more profitable, consistent with boards setting performance goals to induce an appropriate amount of corporate risk taking. Our study contributes to the accounting literature on target setting and corporate risk taking by identifying accounting performance goals as a tool in executive compensation contract design to influence risk taking. This paper was accepted by Suraj Srinivasan, accounting.


Author(s):  
Priyastiwi Priyastiwi

The purpose of this article is to provide the basic model of Hofstede and Grays’ cultural values that relates the Hofstede’s cultural dimensions and Gray‘s accounting value. This article reviews some studies that prove the model and develop the research in the future. There are some evidences that link the Hofstede’s cultural values studies with the auditor’s judgment and decisions by developing a framework that categorizes the auditor’s judgments and decisions are most likely influenced by cross-cultural differences. The categories include risk assessment, risk decisions and ethical judgments. Understanding the impact of cultural factors on the practice of accounting and financial disclosure is important to achieve the harmonization of international accounting. Deep understanding about how the local values may affect the accounting practices and their impacts on the financial disclosure are important to ensure the international comparability of financial reporting. Gray’s framework (1988) expects how the culture may affect accounting practices at the national level. One area of the future studies will examine the impact of cultural dimensions to the values of accounting, auditing and decision making. Key word : Motivation, leadership style, job satisfaction, performance


2019 ◽  
Vol 118 (2) ◽  
pp. 7-12
Author(s):  
Ok-Hee Park ◽  
Kwan-sik Na ◽  
Seok-Kee Lee

Background/Objectives: The purpose of the paper is to examine how family-friendly certificates introduced to pursue the compatibility of work and family life affect the financial performance of small and medium-sized manufacturers, and to provide useful information to companies considering the introduction of this system in the future.


2013 ◽  
Vol 13 (2) ◽  
Author(s):  
Wisyanto Wisyanto

Tsunami which was generated by the 2004 Aceh eartquake has beenhaunting our life. The building damage due to the tsunami could be seenthroughout Meulaboh Coastal Area. Appearing of the physical loss wasclose to our fault. It was caused by the use dan plan of the land withoutconsidering a tsunami disaster threat. Learning from that event, we haveconducted a research on the pattern of damage that caused by the 2004tsunami. Based on the analysis of tsunami hazard intensity and thepattern of building damage, it has been made a landuse planning whichbased on tsunami mitigation for Meulaboh. Tsunami mitigation-based ofMeulaboh landuse planning was made by intergrating some aspects, suchas tsunami protection using pandanus greenbelt, embankment along withhigh plants and also arranging the direction of roads and setting of building forming a rhombus-shaped. The rhombus-shaped of setting of the road and building would reduce the impact of tsunamic wave. It is expected that these all comprehensive landuse planning will minimize potential losses in the future .


Author(s):  
Manisuli Ssenyonjo

The chapter argues that some of the criticism against the use of proprio motu powers is justified, particularly in respect of selectivity, given that other situations outside Africa were not investigated in equal manner. Equally, the evidence by which the Prosecutor initiated proprio motu prosecutions was generally weak and, despite some dissenting voices, it was never turned down by the ICC’s pre-trial chambers. This is particularly interesting if one considers that the situation in Kenya, at least, was politically charged. Although the chapter largely discusses the legal contours of the Prosecutor’s proprio motu powers and their application in the two African situations, it also assesses the impact of these prosecutions on local proceedings and the potential for suffocating the investigated nations’ relations with the ICC. To avoid similar conflicts in the future, the author argues that the politicization of prosecutorial discretion could be assessed by considering comparable situations in which the Prosecutor is not attempting to proceed.


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