{"corpus_id":238643658,"paper_sha":"1e235e0654112d2389aae678b8cfec0fe5663973","doi":"10.1504/ijcg.2021.10040335","arxiv_id":null,"pmid":null,"pmcid":null,"mag_id":3193980923,"dblp_id":null,"acl_id":null,"title":"Executive compensation structure and earnings management: evidence from Australian listed firms in the period of governance reform","year":2021,"publication_date":"2021-08-13","venue":"International Journal of Corporate Governance","journal":{"name":"International Journal of Corporate Governance","pages":null,"volume":null},"journal_issn":null,"journal_title":null,"publication_types":[],"pubmed_pub_types":null,"s2_fields_of_study":["Business","Economics"],"reference_count":0,"citation_count":1,"influential_citation_count":1,"is_open_access":false,"arxiv_categories":null,"arxiv_license":null,"arxiv_journal_ref":null,"mesh_headings":null,"chemicals":null,"comments_corrections":null,"source_flags":1,"s2_open_access_pdf_url":null,"s2_open_access_landing_url":null,"s2_open_access_license":null,"s2_open_access_status":null,"pmc_open_access_pdf_url":null,"pmc_open_access_landing_url":null,"pmc_open_access_license":null,"pmc_open_access_status":null,"unpaywall_open_access_pdf_url":null,"unpaywall_open_access_landing_url":null,"unpaywall_open_access_license":null,"unpaywall_open_access_status":null,"abstract":"Executive compensation incentive is a key factor in inducing management of earnings in firms. Using a sample of 3,326 firm-year observations covering 2000 to 2006 fiscal years, the analysis shows that in Australia managers who receive higher salary tend to engage in less earnings management whereas managers who receive more incentive payments tend to engage in more earnings management. Moreover, Australian firms are committed to a gradual increase in the incentive payments in responding to the regulation reform known as CLERP 9. Subsequently, executives who receive more option grants are more likely to engage in earnings management. These findings will have implications for regulators who intend to improve both the efficacy of CEO compensation structure and financial reporting quality.","claims":[{"public_id":"cl_4f062baee650872c226f543b4a56bea8","status":"active","text":"Australian firms gradually increased incentive payments in response to the CLERP 9 governance reform.","confidence":0.94,"contributors":[{"id":1,"public_id":"12632b8b5f","public_label":"Anonymous (12632b8b5f)","roles":["extraction"],"url":"https://sah.borca.ai/u/12632b8b5f"}],"url":"https://sah.borca.ai/claims/cl_4f062baee650872c226f543b4a56bea8"},{"public_id":"cl_c0ca9627e6c0f4115e15c6e401876072","status":"active","text":"Higher incentive payments are associated with more earnings management among managers in Australian listed firms.","confidence":0.98,"contributors":[{"id":1,"public_id":"12632b8b5f","public_label":"Anonymous 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