The Effects of Deferred Compensation and Performance-based Compensation on Firm Value
- Authors
- Byun, Dong Heon; Kim, Jinbae; Shin, Joon Yong
- Issue Date
- 4월-2009
- Publisher
- ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- Keywords
- compensation; incentive; deferred compensation; performance; firm value
- Citation
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, v.16, no.1, pp.49 - 67
- Indexed
- SCIE
SCOPUS
- Journal Title
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- Volume
- 16
- Number
- 1
- Start Page
- 49
- End Page
- 67
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/120274
- DOI
- 10.1080/16081625.2009.9720829
- ISSN
- 1608-1625
- Abstract
- This study empirically investigates the effects of two incentive systems: (i) the deferred compensation system, which involves paying lower (higher) compensation than the industry average during employees' early (later) service periods; and (ii) the performance-based compensation system. Empirical results using employee-wage data from Korean firms show that both the deferred compensation system and the performance-based compensation system have positive associations with firth value measured by Tobin's Q. However, the associations between the two types of incentive system and other value-relevant factors are not uniform. While the deferred compensation system contributes to the enhancement of ROA and an improvement in labor productivity, the performance-based compensation system stimulates sales growth.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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