abstract: This study provides new evidence on the choice of performance measures used in dual-class firms to incentivize CEOs. The choice of performance measures is informative about the extent to which the board of directors focuses CEO efforts on firms' long-term versus short-term objectives. To empirically operationalize performance evaluation horizon, I measure the length of the performance evaluation period in CEO stock awards, the use of stock-based measures, and the use of peer-based measures. I collect data on 419 dual-class firms and match them with a control group of single-class firms. I find that market-based metrics are less likely to be used by dual-class firms relative to single-class firms. In addition, I find that peer-based measures are much less common for dual-class than single-class firms. These findings suggest that dual-class firms shield their executives from short-term market pressures and design stock compensation contracts that deemphasize volatile stock prices. / Dissertation/Thesis / Ph.D. Accountancy 2014
| Identifer | oai:union.ndltd.org:asu.edu/item:24867 |
| Date | January 2014 |
| Contributors | Li, Ji (Author), Matejka, Michal (Advisor), Hwang, Yuhchang (Committee member), Reckers, Philip (Committee member), Arizona State University (Publisher) |
| Source Sets | Arizona State University |
| Language | English |
| Detected Language | English |
| Type | Doctoral Dissertation |
| Format | 43 pages |
| Rights | http://rightsstatements.org/vocab/InC/1.0/, All Rights Reserved |
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