Managers' pay duration and voluntary disclosures

• Main Authors: CHENG, Qiang, CHO, Young Jun, KIM, Jae B.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: executive compensation; management forecasts; pay duration; voluntary disclosure; Accounting; Benefits and Compensation; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1893; https://ink.library.smu.edu.sg/context/soa_research/article/2920/viewcontent/Manager_pay_duration_vd_2020_sv.pdf
• Institution: Singapore Management University

Given the adverse effect on their welfare, managers are reluctant to disclose bad news in a timely fashion. We examine the effect of managers' pay duration on firms' voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers' annual compens...