CEO Pay Components and Aggressive Non-GAAP Earnings Disclosure

<jats:p> We examine the relation between CEO pay components and aggressive non-GAAP earnings disclosures using CEO pay components as proxies for managers’ short- versus long-term focus. Specifically, we explore the extent to which short-term bonus plan payouts and long-term incentive plan payouts are associated with: (1) Managers’ propensity to exclude expense items in excess of those excluded by equity analysts; and, (2) The magnitude of those incremental exclusions. We find that long-term incentive plan payouts are negatively associated with the likelihood and magnitude of aggressive non-GAAP exclusions. Our results are consistent with managers reporting non-GAAP information less aggressively when they are more focused on long-term, rather than short-term, value. /jats:p

Black, CEO Pay Components and Aggressive Non-GAAP Earnings Disclosure, 'Journal of Accounting, Auditing & Finance' (, ) pp. 0148558X2198990. Copyright © 2021. DOI: 10.1177/0148558x21989907. Users who receive access to an article through a repository are reminded that the article is protected by copyright and reuse is restricted to non-commercial and no derivative uses. Users may also download and save a local copy of an article accessed in an institutional repository for the user's personal reference. For permission to reuse an article, please follow our Process for Requesting Permission.



Work Title CEO Pay Components and Aggressive Non-GAAP Earnings Disclosure
Open Access
  1. Dirk E. Black
  2. Ervin L. Black
  3. Theodore E. Christensen
  4. Kurt H. Gee
License CC BY-NC-ND 4.0 (Attribution-NonCommercial-NoDerivatives)
Work Type Article
  1. SAGE Publications
Publication Date February 15, 2021
Publisher Identifier (DOI)
  1. 10.1177/0148558x21989907
  1. Journal of Accounting, Auditing & Finance
Deposited September 09, 2021




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Work History

Version 1

  • Created
  • Added BBCG--12-04-2020-1.pdf
  • Added Creator Dirk E. Black
  • Added Creator Ervin L. Black
  • Added Creator Theodore E. Christensen
  • Added Creator Kurt H. Gee
  • Published
  • Updated
  • Updated