Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/21000
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dc.contributor.authorNagar, Neerav
dc.contributor.authorArya, Avinash
dc.date.accessioned2018-09-13T16:33:57Z
dc.date.available2018-09-13T16:33:57Z
dc.date.issued2018-08-16
dc.identifier.citationAvinash Arya and Neerav Nagar (2018) "Stewardship value of income statement classification: an empirical examination" Journal of Accounting, Auditing & Finance, August, https://doi.org/10.1177/0148558X18793067en_US
dc.identifier.urihttp://hdl.handle.net/11718/21000
dc.description.abstractThis study investigates the use of earnings components in setting CEO compensation and explores how persistence and controllability affect it. The results indicate that compensation committees do accord differential treatment to earnings components based on their persistence and controllability. Among above the line items, income from continuing items, the most persistent item, also receives the most weight, followed by special items, which have smaller persistence. Furthermore, these weights vary across firms in different stages of life cycle in a manner that mirrors variations in their informativeness and persistence. Weights on special items also exhibit contextual sensitivity based on their type and frequency. Among below the line items, discontinued items, which are at least under partial control of the CEO, receive a positive weight. Except extraordinary items, which are largely uncontrollable, we find no evidence that CEOs are shielded from the income-decreasing effects of any of the earnings componentsen_US
dc.publisherSage Publicationsen_US
dc.subjectEarnings persistenceen_US
dc.subjectSarbanes–Oxley Acten_US
dc.subjectControllability principleen_US
dc.subjectDiscontinued operationsen_US
dc.titleStewardship value of income statement classification: an empirical examinationen_US
dc.typeArticleen_US
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