Journal of Accounting and Economics Vol. 5 1983
The association between performance plan adoption and corporate capital investment
Abstract
This paper examines the association between one specific change in executive compensation contracts (adoption of performance plans), changes in corporate capital investment, and security market performance. The empirical results indicate that (when compared to similar non-adopting firms) firms adopting performance plans exhibit a significant growth in capital expenditures and a favorable security market reaction to the announcement of the performance plan adoption. These results provide evidence that changes in executive compensation contracts are associated with changes in managerial decisions.
- DOI
- 10.1016/0165-4101(83)90003-4
- Volume
- 5
- Pages
- 3-30
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref