proquestdocuments-2013-09-12

7/29/2019 ProQuestDocuments-2013-09-12

1/4

_______________________________________________________________

_______________________________________________________________

Report Information from ProQuest12 September 2013 09:06

_______________________________________________________________

12 September 2013 ProQuest


2/4

Table of contents1. A trade-off between non-fundamental risk and incentives............................................................................ 1

12 September 2013 ii ProQuest


3/4

Document 1 of 1

A trade-off between non-fundamental risk and incentivesAuthor: Fung, Michael KPublication info: Review of Quantitative Finance and Accounting 41.1 (Jul 2013): 29-51.ProQuest document link

Abstract: This study conjectures that CEOs are rewarded more heavily for fundamental than for non-fundamental performance, and that the impact of non-fundamental risks is more negative than that of

fundamental risks on pay-performance sensitivity. While the first conjecture stems from the controllability

principle, the second conjecture is attributable to the interplay between the risk-incentive trade-off and

delegation of responsibility to the agent. This study devised measures for fundamental and non-fundamental

performance using an ARIMA-based unobserved-component approach. The two conjectures are strongly

supported by this study's findings over a wide range of empirical specifications, indicating that the optimal level

of pay-performance sensitivity depends not only on the degree, but also on the nature, of performance

uncertainty.[PUBLICATION ABSTRACT]

Publication title: Review of Quantitative Finance and Accounting

Volume: 41

Issue: 1

Pages: 29-51

Publication year: 2013

Publication date: Jul 2013

Year: 2013

Publisher: Springer Science & Business Media

Place of publication: Boston

Country of publication: Netherlands

Publication subject: Business And Economics--Accounting, Business And Economics--Banking And Finance

ISSN: 0924865X

Source type: Scholarly Journals

Language of publication: English

Document type: Feature

DOI: http://dx.doi.org/10.1007/s11156-012-0299-7

ProQuest document ID: 1370219182

Document URL: http://search.proquest.com/docview/1370219182?accountid=44945

Copyright: Springer Science+Business Media New York 2013

Last updated: 2013-06-27

_______________________________________________________________

12 September 2013 Page 1 of 2 ProQuest
http://search.proquest.com/docview/1370219182?accountid=44945http://dx.doi.org/10.1007/s11156-012-0299-7http://search.proquest.com/docview/1370219182?accountid=44945http://search.proquest.com/docview/1370219182?accountid=44945http://dx.doi.org/10.1007/s11156-012-0299-7http://search.proquest.com/docview/1370219182?accountid=44945


4/4

Contact ProQuestCopyright 2012 ProQuest LLC. All rights reserved. - Terms and Conditions

12 September 2013 Page 2 of 2 ProQuest
http://www.proquest.com/go/contactsupporthttp://www.proquest.com/go/contactsupporthttp://search.proquest.com/info/termsAndConditionshttp://search.proquest.com/info/termsAndConditionshttp://www.proquest.com/go/contactsupport