Director Compensation and the Reliability of Accounting Information

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dc.contributor.author Boumosleh, Anwar
dc.date.accessioned 2016-03-03T14:02:39Z
dc.date.available 2016-03-03T14:02:39Z
dc.date.copyright 2009 en_US
dc.date.issued 2016-03-03
dc.identifier.issn 0800-3564 en_US
dc.identifier.uri http://hdl.handle.net/10725/3261 en_US
dc.description.abstract This paper studies the effect of incentive-based compensation on directors' monitoring of management. Using total accruals to measure the level of earnings management, I find that director stock option compensation is associated with higher levels of total accruals. I interpret this result to suggest that director stock options are more likely to align interests of directors with those of managers and that this convergence of interest manifests in lower transparency and reliability of financial information. The results suggest that director stock option compensation provides incentive for directors to compromise their task in the financial reporting process. en_US
dc.language.iso en en_US
dc.title Director Compensation and the Reliability of Accounting Information en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 200501018 en_US
dc.author.woa N/A en_US
dc.author.department Department of Finance and Accounting (FINA) en_US
dc.description.embargo N/A en_US
dc.relation.journal Financial Review en_US
dc.journal.volume 44 en_US
dc.journal.issue 4 en_US
dc.article.pages 525-539 en_US
dc.keywords Director compensation en_US
dc.keywords Stock options en_US
dc.keywords Earnings management en_US
dc.identifier.doi http://dx.doi.org/10.1111/j.1540-6288.2009.00228.x en_US
dc.identifier.ctation Boumosleh, A. (2009). Director compensation and the reliability of accounting information. Financial Review, 44(4), 525-539. en_US
dc.author.email anwar.boumosleh@lau.edu.lb en_US
dc.identifier.url http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6288.2009.00228.x/epdf en_US

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