Accounting Conservatism and Executive Compensation

Subject Areas : Management Accounting

بهمن بنی مهد ¹ (ندارد)
مهدی مراد زاده فرد ² (ندارد)
محمد جعفر ولیخانی ³ (نویسنده مسئول)

Received: 2013-12-23 Accepted : 2014-02-20 Published : 2014-10-12

Keywords: accounting conservatism, Executive Compensation and Age,

Abstract :

According to positive accounting research, accounting conservatism as an efficientcontracting mechanism can restrict the opportunistic behavior of management inoverstating executive compensation. Hence , This study investigates the relationship betweenaccounting conservatism and executive compensation in the 120 listed firms of Tehran StockExchange (TSE) during a 9-year period from 2004-2012. The research method is correlationand we use multiple regression to test hypotheses. The results of this study show that there isa negative and significant relation between accounting conservatism and executivecompensation in sample study. Research evidence also show that firm size and profitabilityhave a positive effect on executive compensation. Moreover, findings indicate that debt ratioand management change have no any relation with executive compensation.