讲座主题：Stock-Performance Goals in Executive Compensation Contracts
and Management Earnings Guidance
讲座老师：曹顺教授 美国乔治亚州立大学
讲座时间：2017年12月28日下午2点30分
讲座地点：文泉楼南401
Abstract: We examine whether the incentive to achieve stock-performance goals in executive compensation contracts affects managers’ discretionary guidance behavior. Results show that when approaching the end of evaluation period, managers facing Right-Below performance, defined as prevailing stock performance below the lowest performance goal by a small margin, are less (more) likely to issue bad (good) news guidance compared with managers facing other performance zones; however, guidance issued by Right-Below firms does not contain more optimistic bias. Such discretionary guidance behavior regarding the timing of good versus bad news magnifies with the monetary benefits from achieving performance goals and weakens with the costs of exercising discretion and the likelihood of being detected. Consistent with the market unable to fully unravel managers’ discretionary guidance behavior, firms with Right-Below performance have more optimistic analysts’ forecasts and higher abnormal stock returns near the end of the evaluation period. Shortly after the evaluation period ends, Right-Below firms are more likely to issue bad news guidance and experience declining stock prices. The overall evidence is consistent with managers withholding (accelerating) bad (good) news guidance near the end of the evaluation period to boost the likelihood of achieving stock-performance goals.
专家简介
曹顺，男，美国伊利诺伊大学厄巴纳-香槟分校会计学博士，现任美国乔治亚州立大学麦克鲁滨孙商学院会计学助理教授，主要代表作如下：
Publications
Single-authored
Cao, S. S.(2016) Reexamining Growth Effects: Are All Types of Asset Growth the Same?Contemporary Accounting Research(SOA Premier)
With One Coauthor
Cao, S. S., & Narayanamoorthy, G. S. (2012). Earnings volatility, post–earnings announcement drift, and trading frictions. Journal of Accounting Research(SOA Premier), 50(1), 41–74.
Working Papers
Cao, S., Ma, G., Tucker J., & Wan, C. Technological Competition and Product Disclosure
·Under review 3ndround atThe Accounting Review
·Presented at FARS meeting 2017, Georgia State University, National University of Singapore, Nanyang Technological University, Singapore Management University, Erasmus University, University of Melbourne and University of North Carolina at Charlotte
Cao, S,Guojin Gong and H.Z. Shi. Private Information Acquisition and Corporate Investment:
Evidence from Site Visits
·In preparation for submission to 2ndroundJournal of Accounting and Economics
·Presented at Beijing University, Tsinghua University, Fudan University, Nanjing University and Shanghai University of Finance and Economics
Cao.S, Guojin Gong, Laura Li and Hayoung Yoon. Stock-Performance Goals in Executive Compensation Contracts and Management Earnings Guidance
·Accepted by SMU symposium 2017
·Presented at Georgia State University and the University of Illinois in 2017
Campbell, John, S. Cao, H.S. Chang and R. Chiorean.The Effects of Risk Management on Management Forecast Behavior
·Accepted by SMU symposium 2017
·Presented at Georgia State University, Lehigh University and SMU-NCCU joint Accounting conference
Cao, S., Tao, M., & Wan, C. Do Local Investors Always Know Better? Evidence from China's Market Segmentation
·Under review at 2ndroundAccounting Horizon
·Accepted by Accounting Horizon Conference on 2017
Cao, S., Fan, Y., Narayanamoorthy, G., & Rowe, S. Auditor Litigation: Consequences for Other Auditors
·Recipient of the award for the best paper coauthored with a Ph.D. student at AAA Audit Midyear conference
·Presented at 27thCFEA conference, AAA annual meeting, Tulane University and at the AAA Audit Midyearconference
Works-in-Progress
“Reg FD and Institutional Investors” with Yongtae Kim and Yun Ke
“Growing pains or growing gains: the implications of suppliers” with Eric Yeung and Zhe Wang
