Loading...
|
Please use this identifier to cite or link to this item:
https://nccur.lib.nccu.edu.tw/handle/140.119/76851
|
Title: | 審計委員會權益基礎報酬是否影響 公司之權益資金成本及信用評等? Does Audit Committees’ Equity-based Compensation Affect Firms’ Cost of Equity Capital and Credit Rating? |
Authors: | 陳若晞 |
Contributors: | 俞洪昭 陳若晞 |
Keywords: | 審計委員會 權益基礎報酬 權益資金成本 信用評等 Audit committee Equity-based compensation Equity capital Credit rating |
Date: | 2015 |
Issue Date: | 2015-07-27 11:20:13 (UTC+8) |
Abstract: | 本研究以權益基礎報酬占總報酬的比率來捕捉薪酬結構,並據以探討給予審計委員會的薪酬結構對於公司權益資金成本及信用評等之影響。利用 2006 至 2010 年間納入美國 S&P1500指數之公司 (排除金融服務與保險業) 為樣本,本研究發現,若權益基礎報酬佔審計委員會薪酬比率越高,其公司之權益資金成本越低,但該公司之信用評等卻越差。顯示權益基礎報酬之比重在二種財報使用者眼中具有不同涵義。投資人認為給予審計委員會較高之權益基礎報酬比重,可使監督更有效,投資人承擔之資訊風險降低,進而願意降低其要求報酬;信用評等機構則認為,給予較高的權益基礎報酬比重將傷害審計委員會獨立性,影響公司治理結構,並降低財務報導之品質,因而給予此類公司較差之信用評等。 This study examines how investors and credit rating agents react to audit committees’ equity-based compensation. Based on a sample of S&P 1500 firms during 2006-2010, the empirical results show that firms who pay audit committees higher portion of equity-based compensation have lower cost of equity capital and lower credit rating. These results suggest different information users perceive and react to equity-based compensation in different ways. Particularly, investors appear to perceive that higher portion of equity-based compensation can align audit committee members’ interest with the shareholders’, leading to more effective monitoring and smaller information risk. Therefore, investors react by reducing their cost of equity capital. In contrast, credit rating agents appear to perceive that higher portion of equity-based compensation may harm audit committees’ independence, resulting in decreased quality of financial reporting. Therefore, credit rating agents react by downgrading firms’ credit ratings. |
Reference: | Agrawal, A., and S. Chadha. 2005. Corporate governance and accounting scandals. Journal of law and economics, 48(2), 371-406. Altman,E.I. 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance 23: 589-609. Archambeault, D.S., F.T. Dezoort, and D.R. Hermanson. 2008. Audit committee incentive compensation and accounting restatements. Contemporary Accounting Research 25 (4):965-992 Ashbaugh-Skaife, H., D.W. Collins, and R. LaFond. 2006. The effects of corporate governance on firms’ credit ratings. Journal of Accounting and Economics 42: 203-243. _____, _____, W.R. Kinney, and R. LaFond. 2009. The effect of SOX internal control deficiencies on firm risk and cost of equity. Journal of Accounting Research 47 (1): 1-43. Attig, N., S.E. Ghoul, and O. Guedhami. 2013. Corporate social responsibility and credit ratings. Journal of Business Ethics 117:679–694. Barrier, M. 2002. The compensation balance. Internal Auditor 59 (3): 42–7. Bédard, J., S.M. Chtourou, and L. Courteau. 2004. The effect of audit committee expertise, independence, and activity on aggressive earnings management. Auditing: A Journal of Practice & Theory 23 (2): 13–35. Beneish, M. D. and M. E. Vargus. 2002. Insider trading, earnings quality, and accrual mispricing. The Accounting Review 77(4): 755-791. Bhojraj, S., and P. Sengupta. 2003. Effect of corporate governance on bond ratings and yields: The role of institutional investors and outside directors. Journal of Business 76 (3): 455–475. Bierstaker, J.L., J.R. Cohen, F.T. DeZoort, and D.R. Hermanson. 2012. Audit committee compensation, fairness, and the resolution of accounting disagreements. Auditing: A Journal of Practice & Theory 31(2): 131-150. Botosan, C. A. 1997. Disclosure level and the cost of equity capital. The Accounting Review 72 (3): 323–349. _______, and M.A. Plumlee. 2002. A re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research 40 (1): 21–40. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees. 1999. Report and recommendations of the Blue Ribbon Committee on improving the effectiveness of corporate audit committees. New York, NY: New York Stock Exchange and The National Association of Securities Dealers. Campbell, J. L., J. Hansen, C.A. Simon, and J.L. Smith. 2015. Are audit committee stock options, non-option Equity, and compensation mix associated with financial reporting quality? Auditing: A Journal of Practice & Theory (Forthcoming) Chandar, N., H. Chang, and X. Zheng. 2012. Does overlapping membership on audit and compensation committees improve a firm`s financial reporting quality? Review of Accounting & Finance 11(2): 141-165. Chen, K.Y., and J. Zhou. 2007. Audit committee, board characteristics, and auditor switch decisions by Andersen`s clients. Contemporary Accounting Research 24 (4): 1085-1117. Cheng, Q., and T. D. Warfield. 2005. Equity incentives and earnings management. The Accounting Review 80(2): 441-476. Dechow, P., W. Ge, C. Larson, and R.G. Sloan. 2011. Predicting material accounting misstatements. Contemporary Accounting Research 28 (1): 17–82. DeFond, M. L., R. N. Hann, and X. Hu, 2005. Does the market value financial expertise on audit committees of boards of directors? Journal of accounting research 43(2): 153-193. Dhaliwal, D. S., S. Heitzman, and O. Z. Li. 2006. Taxes, leverage, and the cost of equity capital. Journal of Accounting Research 44 (4): 691–723. _______,O. Z. Li, A. Tsang, and Y. G. Young. 2011. Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review 86 (1): 59-100. _______, V. Naiker. and F. Navissi. 2010. The association between accruals quality and the characteristics of accounting experts and mix of expertise on audit committees. Contemporary Accounting Research 27 (3):787-827 Diamond, D. W., and R. E. Verrecchia. 1991. Disclosure, liquidity, and the cost of capital. The Journal of Finance 45 (4): 1325–1359. Dittmar, A., and J. Mahrt-Smith. 2007. Corporate governance and the value of cash holdings. Journal of Financial Economics. 83(3): 599-634. Doyle, J.T., W. Ge, and S. McVay. 2007. Accruals quality and internal control over financial reporting. The Accounting Review. 82(5): 1141-1170. Elton, E.J. 1999. Expected return, realized return, and asset pricing tests. Journal of Finance 54(4): 1199-1220. Engel, E., R. Hayes, and X. Wang. 2010. Audit committee compensation and the demand for monitoring of the financial reporting process. Journal of Accounting & Economics 49 (1/2): 136–54. Easton, P. 2004. PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capital. The Accounting Review 79 (1): 73–95. Fama, E., and K. French. 1992. The cross-section of expected stock returns. The Journal of Finance 47 (2): 427–465. ______, ______. 1997. Industry costs of equity. Journal of Financial Economics 43: 153–194. ______, and M.C. Jensen. 1983. Separation of Ownership and Control, Journal of Law & Economics 26, 301-25. Fernando, G.D. and A.M. Abdel-Meguid. 2010. Audit quality attributes, client size and cost of equity capital. Review of Accounting and Finance 9 (4): 363-381. Francis, J., R. LaFond, P. Olsson, and K. Schipper. 2005. Cost of capital and earnings attributes. The Accounting Review 79 (4): 976–1010. Ge, W. and S. McVay. 2005. The disclosure of material weaknesses in internal control after the Sarbanes-Oxley Act. Accounting Horizons 19(3):137-158. Gebhardt, W., C. Lee, and B. Swaminathan. 2001. Toward an implied cost of capital. Journal of Accounting Research 39 (1): 135–176. Gentry, J.A., P. Newbold, and D.T. Whitford. 1984. Bankruptcy, working capital and funds flow components, Managerial Finance. 10 (3) : 26-39. Goh, B.W. 2009. Audit committees, boards of directors, and remediation of material weaknesses in internal control. Contemporary Accounting Research 26 (2): 549-579. Gode, D., and P. Mohanram. 2003. Inferring the cost of capital using the Ohlson-Juettner model. Review of Accounting Studies 8: 399–431. Guidry, F., A. J. Leone, and S. Rock. 1999. Earnings-based bonus plans and earnings management by business-unit managers. Journal of Accounting and Economics 26 (1–3): 113–42. Hewitt Associates. 2010. Analysis of outside board of director compensation. Higgs, D. 2003. Review of the role and effectiveness of non-executive directors. London: Department of Trade and Industry. Hoitash, U,. and R. Hoitash. 2009. Conflicting objectives within the board: Evidence from overlapping audit and compensation committee members. Group Decision and Negotiation 18 (1): 57-73. Holthausen, R. W., and R. L. Watts. 2001. The relevance of the value-relevance literature for financial accounting standard setting. Journal of accounting and economics, 31(1): 3-75. Hribar, P., and N. T. Jenkins. 2004. The effect of accounting restatements on earnings revisions and the estimated cost of capital. Review of Accounting Studies 9: 337–356. Jensen, M.C. and W.H. Mecking. 1976. Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3, 305-360. ______,and R.S. Ruback, 1983. The market for corporate control: The scientific vidence. Journal of Financial economics 11(1): 5-50. Kaplan, R., and G. Urwitz. 1979. Statistical models of bond ratings: A methodological inquiry. Journal of Business 52 (2): 231–261. Keune, M.B., and K. M. Johnstone. 2015. Audit committee incentives and the resolution of detected misstatements. Auditing: A Journal of Practice & Theory. (Forthcoming) Khurana, I. K., and K. K. Raman. 2004. Litigation risk and the financial reporting credibility of big 4 versus non-big 4 audits: Evidence from Anglo-Amerian countires. The Accounting Review 79 (2): 473-495. Klein, A. 2002a. Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics 33 (3): 375–400. Klein, A. 2002b. Economic determinants of audit committee independence. Accounting Review 77 (2): 435–52. Kothari, S. P., X. Li, and J. E. Short. 2009. The effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis. The Accounting Review 84 (5): 1639-1670. Krishnan, J. 2005. Audit committee quality and internal control: An empirical analysis. The accounting review. 80 (2): 649-675. Kutner, M. H., C. J. Nachtsheim, and J. Neter. 2004. Applied linear regression models. 4th edition. McGraw-Hill Irwin. Larcker,D., and B.Tayan. 2012. Fixed or contingent: How should “governance monitors” be paid? Stanford Closer Look Series October 1. Laux, C., and V. Laux. 2009. Board committees, CEO compensation, and earnings management. The Accounting Review 84 (3): 869-91. Lennox, C.S., and C.Park. 2007. Audit firm appointments, audit firm alumni, and audit committee independence. Contemporary Accounting Research 24 (1):235-258 Lin Y.C., and H.C. Yu. 2010. Do Compensation and overlapping affect audit committee’s oversight effectiveness? – evidence from internal control weaknesses. Concurrent Session of 2010 Annual Meeting, American Accounting Association. San Francisco, USA. MacGregor, J. 2012. Audit committee equity holdings, the risk of reporting problems, and the achievement of earnings thresholds. Journal of Accounting and Public Policy, 31(5): 471-491. Magilke, M., W. Mayhew, and J. Pike. 2009. Are independent audit-committee members objective? experimental evidence. The Accounting Review 84 (6): 1959–81. Mansi, S., M. Maxwell, and D. Millser. 2004. Does auditor quality and tenure matter to investors? Evidence from the bond market. Journal of Accounting Research 42 (4): 755–793. McDaniel, L., Martin, R. D., and L. A.Maines. 2002. Evaluating financial reporting quality: The effects of financial expertise vs. financial literacy. The Accounting Review 77(1): 139-167. McInnis, J. 2010. Earnings smoothness, average returns, and implied cost of equity capital. The Accounting Review 85 (1): 315-341. Monks, R. and N. Minnow. 2001. Corporate Governance, 2nd edition. Cambridge, MA: Blackwell. _______,and ______. 2011. Corporate Governance, 5th edition. John Wiley & Sons Naiker, V. and D. Sharma. 2009. Former audit partners on the audit committee and internal control deficiencies. The Accounting Review 84 (2):559–87. Nyberg, A. J., I. S. Fulmer, B. Gerhart, and M. A. Carpenter. 2010. Agency theory revisited: CEO return and shareholder interest alignment. Academy of Management Journal, 53 (5): 1029-1049. Ogneva, M., K. R. Subramanyam, and K. Raghunandan. 2007. Internal control weakness and cost of equity: Evidence from SOX section 404 disclosures. The Accounting Review 82 (5): 1255-1297. Ohlson, J. A., and B. E. Juettner-Nauroth. 2005. Expected EPS and EPS growth as determinants of value. Review of accounting studies. 10(2-3): 349-365. Sengupta, P. and S. Zhang. 2015. Equity-based Compensation of outside directors and corporate disclosure quality. Contemporary Accounting Research (forthcoming) Sharma, V. D. 2004. Board of director characteristics, institutional ownership, and fraud: Evidence from Australia. Auditing: A Journal of Practice & Theory. 23(2): 105-117. Shleifer, A., and R. W. Vishny. 1989. Management entrenchment: The case of manager-specific investments. Journal of financial economics. 25(1): 123-139. Standard & Poor’s. 2002. Standard & Poor’s Corporate Governance Scores: Criteria, Methodology and Definitions. McGraw-Hill Companies, Inc., New York. Taub, S. 2005. Board pay surges by double digits. CFO.com, October 3. http://www.cfo.com. U.S. House of Representatives. 2002. The Sarbanes-Oxley Act of 2002. Public Law No. 107-204. Government Printing Office, Washington, DC. Vafeas N. 2005. Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research 22 (4): 1093–1122 Vicknair, D., K. Hickman, and K.C. Carnes. 1993. A note on audit committee independence: Evidence from the NYSE on “grey” area directors. Accounting Horizon 7 (1): 53-57. Williamson. O. E., 1983. Organization form, residual claimants, and corporate control. Journal of Law & Economics 26: 351-336 Winikoff, E. 2006. Director Compensation: NASDAQ 100 vs. NYSE 100. Frederic W. Cook & Co., Inc. Xie, B., W. N. Davidson, and P. J. DaDalt. 2003. Earnings management and corporate governance: The role of the board and the audit committee. Journal of Corporate Finance 9: 295–316. Yermack, D. 2004. Remuneration, retention, and reputation incentives for outside directors. Journal of Finance 99 (5): 2381-2208. Ziebart, D., and S. Reiter. 1992. Bond ratings, bond yields and financial information. Contemporary Accounting Research 9 (1): 252–282. Zheng, X., and C. Cullinan. 2010. Compensation/audit committee overlap and the design of compensation systems. International Journal of Disclosure and Governance 7 (2): 136–56. |
Description: | 碩士 國立政治大學 會計研究所 102353103 |
Source URI: | http://thesis.lib.nccu.edu.tw/record/#G0102353103 |
Data Type: | thesis |
Appears in Collections: | [會計學系] 學位論文
|
Files in This Item:
File |
Size | Format | |
310301.pdf | 2300Kb | Adobe PDF2 | 372 | View/Open |
|
All items in 政大典藏 are protected by copyright, with all rights reserved.
|