ACCTG 502 | Session 1 | CEO Incentives and Earnings Management - 2013
Daniel Bergstressera, Thomas Philippon
Introduction:
The paper examines how CEO incentives, particularly equity-based compensation, influence earnings management practices. The study aims to determine whether stronger alignment between CEO wealth and firm value increases the likelihood of discretionary accounting choices that enhance reported performance in the short term. This focus bridges academic debates on executive pay and practical concerns over corporate governance.
