This survey investigated the relationship between executive compensation and the financial performance of companies. It is hypothesized that a company can utilize its pay system to direct executives＇ efforts toward i...This survey investigated the relationship between executive compensation and the financial performance of companies. It is hypothesized that a company can utilize its pay system to direct executives＇ efforts toward its strategic business objectives, thus contributing to higher levels of corporate financial performance. The survey data consisted of a secondary and non-probabilistic sample of 44 Brazilian industrial companies. In order to operationalize the independent remuneration variable, the authors used average monthly salary, average variable salary, and three indices that were created for this survey： benefits, career, and development. These indices measure the access to benefits, mechanisms for stimulating and supporting careers, and mechanisms to encourage education and professional development that companies offer to their directors, vice presidents, and chief executive officers （CEOs）, who are referred to in this paper by the term ＂executive＂. The remuneration data are from fiscal year 2006. In order to operationalize the financial performance variable, two accounting indicators were used： sales growth and return on equity （ROE） for fiscal years 2006 and 2007. The size of the companies was used as a control variable. The results of a multiple regression analysis do not support the hypothesis that there is a positive and significant relationship between executive compensation and corporate financial performance.展开更多
The global chief executive officer （CEO） should quickly adjust his/her leadership styles, arts, and skills to customize for the particular host country as he/she manages the global organization in its many diverse e...The global chief executive officer （CEO） should quickly adjust his/her leadership styles, arts, and skills to customize for the particular host country as he/she manages the global organization in its many diverse environments. He/she has to quickly customize to the local needs his/her styles of strategic and operational decision-making, communication, and interpersonal approaches. His/her repertoire of leadership styles, arts, and skills has to be wider and richer in variety. He/she must quickly move from one host-country-focused approach to another, drawing the needed blend of leadership styles, arts, and skills from his/her repertoire and effectively applying them to the host country situation. Thus, a CEO must analyze his/her situation and re-orient his/her approach to fit the varying international situations, such as culture, operating, and subsidiary＇s organizational, economic, political, governmental, and technological. An effective CEO is perspicuous and quick of action in adjusting and modifying his/her roles, styles, arts, and leadership processes to fit the situation in which he/she is in at the moment.展开更多
This study investigates the association between quality of financial statements and tenure of statement-related personnel. First, we examined whether there is still a significant association between financial statemen...This study investigates the association between quality of financial statements and tenure of statement-related personnel. First, we examined whether there is still a significant association between financial statement quality and the tenure of audit partners who are responsible for the quality assurance of financial statements after the implementation of mandatory audit partner rotation. We addressed this issue by using a sample of Taiwan Residents companies, with which no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for financial statement quality, was found. Second, we investigated whether an association exists between the financial statement quality and the tenure of management who is responsible for the preparation of financial statements. We also addressed this issue by using Taiwan Residents data and found a significant association between management tenure （MT） and the magnitude of DA. Our findings provide evidence that audit partner tenure would neither improve nor deteriorate the quality assurance of a financial statement, when there is a mandatory audit partner rotation after a fixed period of time. Whereas how MT affects financial statement quality after the enactment of the mandatory audit partner rotation is dependent on the management position. Increasing tenure of chief executive officer （CEO） and chief financial officer （CFO） will enhance and hinder financial statement quality respectively. In the end, we found a significant interaction of tenure between auditor and CFO. This result implies that the downward bias of CFO on the financial statement preparation can be mitigated by auditors with increasing tenure.展开更多
文摘This survey investigated the relationship between executive compensation and the financial performance of companies. It is hypothesized that a company can utilize its pay system to direct executives＇ efforts toward its strategic business objectives, thus contributing to higher levels of corporate financial performance. The survey data consisted of a secondary and non-probabilistic sample of 44 Brazilian industrial companies. In order to operationalize the independent remuneration variable, the authors used average monthly salary, average variable salary, and three indices that were created for this survey： benefits, career, and development. These indices measure the access to benefits, mechanisms for stimulating and supporting careers, and mechanisms to encourage education and professional development that companies offer to their directors, vice presidents, and chief executive officers （CEOs）, who are referred to in this paper by the term ＂executive＂. The remuneration data are from fiscal year 2006. In order to operationalize the financial performance variable, two accounting indicators were used： sales growth and return on equity （ROE） for fiscal years 2006 and 2007. The size of the companies was used as a control variable. The results of a multiple regression analysis do not support the hypothesis that there is a positive and significant relationship between executive compensation and corporate financial performance.
文摘The global chief executive officer （CEO） should quickly adjust his/her leadership styles, arts, and skills to customize for the particular host country as he/she manages the global organization in its many diverse environments. He/she has to quickly customize to the local needs his/her styles of strategic and operational decision-making, communication, and interpersonal approaches. His/her repertoire of leadership styles, arts, and skills has to be wider and richer in variety. He/she must quickly move from one host-country-focused approach to another, drawing the needed blend of leadership styles, arts, and skills from his/her repertoire and effectively applying them to the host country situation. Thus, a CEO must analyze his/her situation and re-orient his/her approach to fit the varying international situations, such as culture, operating, and subsidiary＇s organizational, economic, political, governmental, and technological. An effective CEO is perspicuous and quick of action in adjusting and modifying his/her roles, styles, arts, and leadership processes to fit the situation in which he/she is in at the moment.
文摘This study investigates the association between quality of financial statements and tenure of statement-related personnel. First, we examined whether there is still a significant association between financial statement quality and the tenure of audit partners who are responsible for the quality assurance of financial statements after the implementation of mandatory audit partner rotation. We addressed this issue by using a sample of Taiwan Residents companies, with which no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for financial statement quality, was found. Second, we investigated whether an association exists between the financial statement quality and the tenure of management who is responsible for the preparation of financial statements. We also addressed this issue by using Taiwan Residents data and found a significant association between management tenure （MT） and the magnitude of DA. Our findings provide evidence that audit partner tenure would neither improve nor deteriorate the quality assurance of a financial statement, when there is a mandatory audit partner rotation after a fixed period of time. Whereas how MT affects financial statement quality after the enactment of the mandatory audit partner rotation is dependent on the management position. Increasing tenure of chief executive officer （CEO） and chief financial officer （CFO） will enhance and hinder financial statement quality respectively. In the end, we found a significant interaction of tenure between auditor and CFO. This result implies that the downward bias of CFO on the financial statement preparation can be mitigated by auditors with increasing tenure.
